IMG firms $1.9 billion first-lien term loan at Libor plus 425 bps

By Sara Rosenberg

New York, March 21 - IMG Worldwide Holdings Inc. set pricing on its $1.9 billion seven-year covenant-light first-lien term loan (B1/B) at Libor plus 425 basis points, the wide end of revised talk of Libor plus 400 bps to 425 bps and up from initial talk of Libor plus 325 bps to 350 bps, according to a market source.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Earlier in syndication, the discount on the first-lien term loan was revised from 99½ and the call protection was extended from six months.

The company's $2.45 billion credit facility also provides for a $100 million revolver (B1/B), and a $450 million eight-year covenant-light second-lien term loan (Caa1/B-) priced at Libor plus 725 bps with a 1% Libor floor and a discount of 99.

The second-lien loan has call protection of 102 in year one and 101 in year two.

Previously, pricing on the second-lien loan was increased from Libor plus 675 bps.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of IMG by Silver Lake Partners and William Morris Endeavor Entertainment LLC from Forstmann Little & Co. and to refinance existing debt.

IMG is a New York-based sports, fashion and media business.

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