Encompass Digital tightens discount on $250 million term B to 98

By Sara Rosenberg

New York, Feb. 10 - Encompass Digital Media Inc. moved the original issue discount on its $250 million 51/2-year term loan B to 98 from 97, according to a market source.

Pricing on the loan was left unchanged at Libor plus 650 basis points with a 1.5% Libor floor.

The company's $280 million credit facility (B3/B) also includes a $30 million five-year revolver priced at Libor plus 650 bps with a 1.5% Libor floor as well.

Macquarie Capital and BMO Capital Markets Corp. are the joint bookrunners on the deal, with Macquarie the lead arranger.

Total and senior leverage is 4.25 times off of run-rate EBITDA.

Proceeds will be used to help fund the buyout of the company by Court Square Capital Partners from Wasserstein & Co. LP.

Other funds will come from just under $250 million of rollover and new equity.

Closing is expected this quarter, subject to customary conditions, including regulatory clearances and the transfer of certain FCC licenses.

Encompass is a Los Angeles-based digital media services provider.

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