SMG shifts funds, flexes second-lien term loan to Libor plus 950 bps

By Sara Rosenberg

New York, May 31 - SMG upsized its six-year first-lien term loan to $255 million from $240 million and downsized its 61/2-year second-lien term loan to $105 million from $125 million, according to a market source.

Additionally, pricing on the second-lien term loan was increased to Libor plus 950 basis points from Libor plus 900 bps, the source said.

The second-lien loan's 1.25% Libor floor and original issue discount of 98 were left unchanged, as was the call protection of 103 in year one, 102 in year two and 101 in year three.

Pricing on the first-lien term loan remained at Libor plus 425 bps with a 1.25% Libor floor and an original issue discount of 99.

The first-lien term loan still has 101 repricing protection for one year.

SMG's $385 million credit facility, down from $390 million, also includes a $25 million revolver.

Credit Suisse Securities (USA) LLC and GE Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Recommitments are due at 3 p.m. ET on Friday, the source said.

SMG is a West Conshohocken, Pa.-based venue management company.

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