Sesac shifts some funds between first- and second-lien term loans

By Sara Rosenberg

New York, April 16 – Sesac upsized its fungible add-on first-lien term loan to $35 million from $25 million and downsized its six-year second-lien term loan to $80 million from $90 million, according to a market source.

Pricing on the add-on first-lien term loan remained at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99.26, and pricing on the second-lien term loan remained at Libor plus 800 bps with a 1% Libor floor and a discount of 98½.

The first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has call protection of 103 in year one and 101 in year two.

Jefferies Finance LLC is the lead on the $115 million in new term loan debt.

Proceeds will be used for a dividend recapitalization.

With the add-on first-lien term loan, the company is increasing pricing on its existing first-lien term loan to Libor plus 425 bps with a 1% Libor floor from Libor plus 400 bps with a 1% Libor floor, and the existing loan will get the 101 soft call protection for six months as well.

Existing lenders were offered a 25 bps amendment fee.

Sesac is a Nashville, Tenn.-based performing rights organization.

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