National City Bank is looking for commitments for American Greetings Corporation's $375 million revolving senior secured credit facilities. David Poplar, investor relations manager for the Cleveland, Ohio-based cards company, said the loan consists of two tranches: a $150 million, 364-day revolverg and a $225 million, five-year facility. American Greetings is also in the process of negotiating a three-year asset-backed trade receivables securitization facility of up to $250 million and is selling $400 million in senior subordinated notes due 2008.
The bank meeting was last week, said Poplar, declining to provide a time frame for completion. He declined comment on the choice of banks or pricing, which is said to be in the region of LIBOR plus 2%, noted a banker familiar with the credit. Poplar said the exact amount of the loan is still being decided, though it will be between $350 million and $375 million. Bank of America provided the previous $722 million multi-currency loan, according to Capital DATA Loanware.