Jostens IH $1.27 billion credit facility structure surfaces

By Sara Rosenberg

New York, Aug. 12 - Jostens IH Corp.'s credit facility's size and structure emerged with the $1.27 billion deal containing a $250 million five-year revolving credit facility, a $150 million six-year term loan A and an $870 million seven-year term loan B, according to a syndicate document.

Pricing on all three tranches is still to be determined, as the deal is not expected to launch until after Labor Day. The revolver will contain a 50 basis points commitment fee.

Credit Suisse First Boston is the sole lead arranger and bookrunner on the deal. Deutsche Bank and Bank of America are involved in the deal in agent roles as well, according to a market source.

Proceeds from the credit facility will be used to help fund Kohlberg Kravis Roberts & Co.'s $2.2 billion combination of Jostens Inc., Von Hoffman Corp. and Arcade Marketing into one large company.

KKR will acquire Von Hoffmann and Arcade from DLJ Merchant Banking Partners and Von Hoffmann and Arcade will contribute to Jostens Holdings in exchange for Jostens Holdings' stock, which will then be recapitalized.

KKR and DLJ Merchant Banking will each own a 45% stake in Jostens Holdings upon completion of these transactions. Jostens Holdings will be renamed. The management team and a small group of Jostens minority investors will hold the remaining 10% stake.

The transaction is expected to close this fall and is subject to customary closing conditions.

Jostens is a Minneapolis provider of yearbooks, class rings and graduation products. Von Hoffman is a St. Louis printer of educational textbooks and supplemental materials and direct marketing print services. Arcade is a New York printer and manufacturer of sampling products for the fragrance, cosmetics, consumer products and food and beverage industries.

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