Mood Media discloses spread guidance on $480 million credit facility

By Sara Rosenberg

New York, April 5 - Mood Media Corp. launched on Tuesday its $25 million five-year revolver and $390 million seven-year first-lien term loan with talk of Libor plus 475 basis points to 500 bps and its $65 million 71/2-year second-lien term loan with talk of Libor plus 900 bps, according to a market source.

As was previously reported, all tranches include a 1.5% Libor floor and are being offered at an original issue discount of 99.

The first-lien term loan provides for 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments are due on April 18.

Credit Suisse Securities (USA) LLC is the lead bank on the $480 million credit facility.

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

Proceeds will be used to help fund the acquisition of Muzak Holdings LLC and to refinance existing debt.

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

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.

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