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Authentic Brands updates first- and second-lien term loan pricing
By Sara Rosenberg
New York, Dec. 10 – Authentic Brands Group firmed pricing on its $1.675 billion seven-year incremental first-lien term loan (B1/B) at SOFR+CSA plus 350 basis points, the low end of the SOFR+CSA plus 350 bps to 375 bps talk, and set the original issue discount at 99.25, the midpoint of the 99 to 99.5 talk, according to a market source.
Additionally, the company revised price talk on its $500 million eight-year second-lien term loan (Caa1/CCC+) to a range of SOFR+CSA plus 600 bps to 625 bps from SOFR+CSA plus 650 bps, and then finalized pricing at SOFR+CSA plus 600 bps, the source said.
Furthermore, the original issue discount on the second-lien term loan was tightened to 99.25 from 99.
As before, the first-lien term loan has a 0.5% floor and 101 soft call protection for six months, the second-lien term loan has a 0.5% floor and hard call protection of 102 in year one and 101 in year two, and CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.
BofA Securities Inc., Goldman Sachs Bank USA, KeyBanc Capital Markets, Jefferies LLC and UBS Investment Bank are the leads on the first-lien loan. BofA Securities is the lead on the second-lien loan.
Recommitments were scheduled to be due at 2:30 p.m. ET on Friday, the source added.
Proceeds will be used to fund the acquisition of Reebok from adidas for up to €2.1 billion, with the majority to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration, and to finance a recapitalization in connection with the purchase of significant equity stakes in Authentic Brands by CVC Capital Partners and HPS Investment Partners.
Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors. Reebok is a footwear and clothing company.
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