Mood Media plans $480 million credit facility for Muzak purchase

By Sara Rosenberg

New York, March 24 - Mood Media Corp. has received a commitment for a $480 million credit facility to help fund its acquisition of Muzak Holdings LLC and to refinance existing debt, according to a news release.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

A bank meeting date for the credit facility has not yet been set, an informed source told Prospect News.

The facility consists of a $25 million five-year revolver that is expected to be undrawn at close, a $390 million seven-year first-lien term loan and a $65 million 71/2-year second-lien term loan.

Rating have not yet been received, so there is still a lot of fluidity when it comes to pricing; however, the source said that he expects both the first-and second-lien term loans to include Libor floors likely in the area of 1.25% to 1.5% and original issue discounts of 99.

As for spread, the source said that the first-lien term loan could be around Libor plus 400 basis points, or just north of 400 bps, depending on ratings.

There is a $100 million accordion feature for term loans.

Under the agreement, Mood Media is buying Muzak for $345 million, including net debt to be repaid on closing, at Mood Media.

The acquisition is expected to close during the second quarter.

The combined company will have LTM pro forma revenue of about $400 million and trailing LTM pro forma EBITDA in excess of $100 million.

Mood Media is a Toronto-based in-store media specialist. Muzak is a Fort Mill, S.C.-based provider of sensory branding services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.