Cases & Deals

CROSSMARK Holdings term loan lenders consent to exchange offer

Clients CROSSMARK Holdings, Inc. first lien term lender group

Jones Day represented a group of first and second lien term loan lenders of CROSSMARK Holdings, Inc. ("CROSSMARK"), a leading sales and marketing services company, in connection with its out-of-court restructuring, consummated through an exchange transaction supported by 100 percent of its first and second lien secured term loan lenders (the "Out-of-Court Transaction").

The Out-of-Court Transaction effectuates the exchange of:

(a) approximately $400 million in first lien term loan claims for (i) 100 percent of the equity in the restructured CROSSMARK (subject to dilution by Second Lien Warrants (as defined below) and a new management incentive plan), and (ii) $75 million of new debt in the form of a take-back term loan facility; and

(b) approximately $90 million of second lien term loan claims for warrants entitling holders to receive 7.5 percent of the equity in the restructured CROSSMARK at a par plus accrued strike price (the "Second Lien Warrants").

Additionally, in connection with the Out-of-Court Transaction, CROSSMARK entered into a new $75 million asset based loan facility to provide CROSSMARK with working capital and incremental letters of credit moving forward.