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Authentic Brands upsizes second-lien term loans, revises OIDs
By Sara Rosenberg
New York, April 10 – Authentic Brands Group LLC (ABG Intermediate Holdings 2 LLC) increased its fungible funded covenant-light second-lien term loan due Sept. 29, 2025 to $55 million from $50 million and its fungible delayed-draw covenant-light second-lien term loan due Sept. 29, 2025 to $30 million from $20 million, according to a market source.
As before, the company is also getting a fungible $250 million covenant-light first-lien term loan due Sept. 29, 2024 and a fungible $90 million delayed-draw covenant-light first-lien term loan due Sept. 29, 2024.
The original issue discount on the first- and second-lien term loans was tightened to 99.75 from 99.5, the source said.
Pricing on the first-lien term loan debt remained at Libor plus 350 basis points with a 1% Libor floor and pricing on the second-lien term loan debt remained at Libor plus 775 bps with a 1% Libor floor.
The new and existing first-lien term loan debt will get 101 soft call protection for six months, and the second-lien term loan debt has hard call protection of 102 and then 101.
The delayed-draw debt has a ticking fee of half the margin from days 46 to 75 and the full margin after that.
Bank of America Merrill Lynch, Barclays and KeyBanc Capital Markets are the lead arrangers on the deal.
Recommitments were scheduled to be due at 4 p.m. ET on Tuesday, the source added.
Allocations are expected on Wednesday morning.
Proceeds will be used to fund the acquisition of Nautica from VF Corp., as well as other upcoming acquisitions, and to put cash on the balance sheet.
Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors.
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