Digital Room issues $340M term loan to support Sycamore buyout; terms

Investors have received allocations of Digital Room LLC's $340 million first-lien term loan due December 2028 that priced at the wide end of talk at L+525, with a 0.5% Libor floor and an original issue discount of 99 through a UBS-led arranger group, according to sources. Proceeds will be used to finance the buyout of the company by Sycamore Partners. Financing will also include a $50 million five-year revolving credit facility, which is subject to a springing first-lien net leverage covenant, and a privately placed $140 million eight-year second-lien term loan. The new sponsor equity is to be roughly 45% of the total capitalization. Digital Room provides customized marketing solutions to small and medium-sized businesses through its owned and operated branded websites.

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