Encompass flexes $75 million second-lien loan to Libor plus 775 bps

By Sara Rosenberg

New York, May 30 - Encompass Digital Media Inc. increased pricing on its $75 million eight-year second-lien term loan (Caa2/CCC+) to Libor plus 775 basis points from Libor plus 750 bps, according to a market source.

The second-lien term loan still has a 1% Libor floor, an original issue discount of 99 and call protection of 103 in year one and 101 in year two.

The company's $370 million credit facility also provides for a $30 million five-year revolver (B2/B+) and a $265 million seven-year first-lien term loan (B2/B+).

Pricing on the first-lien term loan firmed in line with talk at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 991/2, and there is still 101 soft call protection for six months.

BMO Capital Markets and Macquarie Capital are the leads on the deal.

Proceeds will be used to refinance existing debt and prefund payments related to a 2012 acquisition.

Stamford, Conn.-based Encompass is a provider of mission-critical media capture, management and distribution services.

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