Sculptor gets $345 million in credit facilities at Libor plus 625 bps

Chicago, Sept. 25 – Sculptor Capital LP, Sculptor Capital Advisors LP and Sculptor Capital Advisors II LP entered into a $320 million seven-year term loan and a $25 million six-year revolving credit facility on Sept. 25, according to an 8-K filing with the Securities and Exchange Commission.

Delaware Life Insurance Co. is the administrative agent and lender.

Initial borrowings will bear interest at Libor plus 625 basis points. The loan can step up to Libor plus 825 bps following a step-up event. It could also step back down to the Libor plus 625 bps rate based on leverage or prepayment, or upon the occurrence of a fall-away trigger.

Following delivery of a cash sweep notice, the margin will be reduced an additional 75 bps.

There is an undrawn commitment fee on the revolver of 50 bps.

Certain prepayments will be subject to a make-whole premium plus a premium of 3% before year three, stepping down to 2% in years three to four and then at par after year four. There is an exception to $175 million of prepayments before March 31, 2022 or $100 million aggregate principal amount at any time.

In connection with the credit agreement, the company has issued Delaware Life Insurance 10-year warrants or restricted stock that allows Delaware Life to purchase up to 7.5% of Sculptor Capital’s class A common stock at an exercise price per share of $11.93.

JPMorgan Chase Bank, NA was the arranger for the credit agreement. J.P. Morgan Securities LLC is the placement agent for the equity issuance.

The company will be prepaying its existing term loan facility dated April 2018 and its subordinated credit facility from February 2019 and redeem all outstanding preferred units, for a savings of $60 million.

Proceeds from the revolver will be used for working capital and general corporate purposes.

Sculptor is an alternative asset management firm with offices in New York, London, Hong Kong and Shanghai.

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