Authentic Brands sets first- and second-lien term loan OID at 99.75

By Sara Rosenberg

New York, June 21 – Authentic Brands Group LLC (ABG Intermediate Holdings 2 LLC) firmed the original issue discount on its $70 million incremental covenant-light first-lien term loan due Sept. 29, 2024 and $30 million incremental covenant-light second-lien term loan due Sept. 29, 2025 at 99.75, the tight end of the 99.5 to 99.75 talk, according to a market source.

Pricing on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor, and pricing on the second-lien term loan is Libor plus 775 bps with a 1% Libor floor.

The incremental first-lien term loan has 101 soft call protection through Oct. 30, like the existing first-lien term loan, and the incremental second-lien term loan has the same 102, 101 hard call protection as the existing second-lien term loan.

Bank of America Merrill Lynch, Barclays and KeyBanc Capital Markets are the lead arrangers on the $100 million in incremental term loans.

Proceeds will be used with borrowings under the company’s existing $90 million delayed-draw first-lien term loan and $30 million delayed-draw second-lien term loan to fund the acquisition of Nine West and Bandolino brands, and pay associated fees and expenses.

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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