SESAC launches $340 million first- and second-lien credit facility

By Sara Rosenberg

New York, Jan. 23 - SESAC held a bank meeting on Wednesday afternoon to launch a $340 million credit facility, according to a market source.

Jefferies & Co. is leading the deal.

The facility consists of a $15 million five-year revolver, a $220 million six-year first-lien term loan and a $105 million 61/2-year second-lien term loan, the source said.

The first-lien term loan is talked at Libor plus 525 basis points to 550 bps with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 925 bps to 950 bps with a 1.25% Libor floor and a discount of 981/2, the source continued.

Included in the first-lien loan is 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 Feb. 4.

Proceeds, along with $284 million of equity, are being used to back the already completed buyout of the company by Rizvi Traverse Management for $590.5 million, or 10.6 times pro forma EBITDA.

Net leverage through the first-lien is 3.6 times and net leverage through the second-lien is 5.5 times, the source added.

SESAC is a Nashville, Tenn.-based performing rights organization that represents the interests of individual songwriters and publishers of music to ensure they are compensated for the public performance of their copyrighted material.

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