Authentic Brands deal revisions emerge; Sequa seeks extension, pre-placed term loan

By Sara Rosenberg

New York, July 14 – Authentic Brands Group LLC increased the size of its incremental first-lien term loan, trimmed the spread and tightened the original issue discount.

And, in more happenings, Sequa Corp. launched an amendment and extension of its existing credit facilities and disclosed plans for a new pre-placed first-lien term loan, and Epicor Software Corp. is getting ready to bring first- and second-lien term loans to market.

Authentic tweaks deal

Authentic Brands lifted its non-fungible incremental first-lien term loan due 2024 to $200 million from $150 million, cut pricing to Libor plus 525 basis points from Libor plus 550 bps and changed the original issue discount to 97.5 from 97, according to a market source.

As before, the term loan has a 1% Libor floor.

BofA Securities, Inc. is leading the deal that will be used for acquisitions and general corporate purposes.

Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors.

Sequa launches

Sequa came to market with an extension of its existing capital structure by about two years across all tranches, and is offering to increase pricing on its extended loans by 175 bps and pay a 50 bps consent fee, a market source remarked.

Additionally, the company is raising a $200 million five-year pari passu first-lien term loan that is being pre-placed with certain existing lenders and is non-callable for two years, and $56 million of new preferred equity backstopped fully by the sponsor, Carlyle, the source continued.

The new loan and equity will be used to provide about $135 million of additional liquidity, to fund an up to $100 million repayment of the existing term loans, and to pay transaction fees, expenses and original issue discount.

Lenders have the option to receive either a partial paydown or a 2.5% PIK fee.

Consenting term loan lenders will receive a first-out priority over non-extending lenders.

Commitments are due at 5 p.m. ET on July 23, the source added.

Barclays is the agent on the new loan and will remain the agent on the existing debt.

Sequa is a diversified aerospace and industrial company.

Epicor on deck

Epicor Software set a lender call for Thursday to launch $2.75 billion of term loans, according to a market source.

The debt is split between a $1.925 billion first-lien term loan (B-) and an $825 million second-lien term loan (CCC), the source said.

KKR Capital Markets is the left lead on the deal that will be used for a dividend recapitalization.

Epicor is an Austin, Tex.-based provider of enterprise business software services.

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