Authentic Brands to launch $2.18 billion of term loans on Wednesday

By Sara Rosenberg

New York, Nov. 30 – Authentic Brands Group is scheduled to hold a lender call at 12:30 p.m. ET on Wednesday to launch $2.175 billion of term loans, according to a market source.

The debt consists of a $1.675 billion seven-year incremental first-lien term loan and a $500 million eight-year second-lien term loan, the source said.

BofA Securities Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets, Jefferies LLC and UBS Investment Bank are the leads on the first-lien loan. BofA Securities is the lead on the second-lien loan.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two, the source added.

Proceeds will be used to fund the acquisition of Reebok from adidas for up to €2.1 billion, with the majority to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration, and to finance a recapitalization in connection with the purchase of significant equity stakes in Authentic Brands by CVC Capital Partners and HPS Investment Partners.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors. Reebok is a footwear and clothing company.

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