Sequential Brands plans $360 million in loans with Martha Stewart buy

By Sara Rosenberg

New York, June 24 – Sequential Brands Group Inc. received a commitment for up to $360 million in senior secured term loans to help fund its acquisition of Martha Stewart Living Omnimedia Inc., according to an 8-K filed with the Securities and Exchange Commission late Tuesday.

GSO Capital Partners LP provided the debt commitment.

The debt consists of an up to $300 million that can be borrowed on the acquisition closing date and an up to $60 million term loan that can be borrowed on or after the closing date.

GSO also committed to purchase $10 million of common stock in the combined company at a price of $13.50 per share.

In addition to funding the acquisition, proceeds from the financing transactions will be used for working capital, capital expenditures and other general corporate purposes.

Under the agreement, Martha Stewart Living Omnimedia is being bought for $6.15 per share, payable 50% in stock and 50% in cash.

Closing is expected in the second half of the year, subject to customary closing conditions and stockholder approval.

There is a 30-day “go-shop” period.

Sequential Brands is a New York-based owner, promoter, marketer and licenser of a portfolio of consumer brands in the fashion, active, and lifestyle categories. Martha Stewart Living Omnimedia is a diversified media and merchandising company.

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