Sesac sets pricing on $115 million loan package

By Paul A. Harris

Portland, Ore., April 9 – Sesac set pricing on $115 million of loans on Thursday, according to a market source.

The Nashville, Tenn.-based performing rights organization is shopping a $90 million six-year second-lien term loan with an 800-basis-points spread to Libor and a 1% Libor floor at 98.5. The loan has 103 call protection in the first year, 101 in the second year.

A $25 million add-on to its existing first-lien term loan has a 25-bps increase to the Libor spread, taking it to 425 bps. There is a 1% Libor floor. The deal is discounted to 99.26 for new money accounts. The add-on will be fungible with the existing loan paper. Soft call protection is extended by six months.

There is a 25-bps amendment fee to existing lenders.

Commitments are due on April 16.

Jefferies LLC has the books.

Proceeds will be used to support a dividend recapitalization.

Last year the company repaid its previous second-lien term loan with proceeds of a $155 million add-on to its previously $235 million first-lien term loan due February 2019, which is priced at Libor plus 400-bps with a 1% Libor floor.

Sesac represents the interests of individual songwriters and publishers of music to ensure they are compensated for the public performance of their copyrighted material.

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