Digital Room finalizes $340 million term loan at Libor plus 525 bps

By Sara Rosenberg

New York, Dec. 16 – Digital Room (DRI Holding Inc.) firmed pricing on its $340 million seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 525 basis points, the high end of the Libor plus 500 bps to 525 bps talk, according to a market source.

As before, the first-lien term loan has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Amortization on the first-lien term loan is 1% per annum.

The company’s $530 million of senior secured credit facilities also include a $50 million revolver (B2/B-) and a $140 million privately placed second-lien term loan (Caa2).

UBS Investment Bank, BNP Paribas Securities Corp., Nomura and CBAM are the joint bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Sycamore Partners.

Other funds for the transaction will come from equity, which is expected to be roughly 45% of the total capitalization.

Digital Room is a Sherman Oaks, Calif.-based provider of customized marketing solutions to small- and medium-sized businesses.

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