Consolidator Gains Credit

Staff -- graphic arts online, 1/1/2001

HOUSTON-Consolidated Graphics, Inc. has entered into a new $225 million senior secured credit facility with 11 banks led by First Union National Bank. The new credit facility is composed of a $50 million five-year term loan and a $175 million five-year revolving credit line. The size of the combined facility may be increased at a later date to $275 million by adding other lenders.

The interest rate for the new credit facility will be based on certain financial ratios and will range from Libor plus 1.25% to Libor plus 2.25%, with the initial pricing set at Libor plus 2.00%

This new facility replaces an existing credit facility and will be used for general corporate purposes including acquisitions. First Union Securities acted as the sole manager for the new facility and Bank One served as the documentation agent.

Consolidated Graphics, with annual sales of $625 million, operates a network of locally managed sheetfed printing companies in 25 states.