Summit Entertainment trims term loan to $550 million, lifts pricing

By Sara Rosenberg

New York, Feb. 25 - Summit Entertainment LLC downsized its term loan to $550 million from $600 million and increased pricing to Libor plus 600 basis points from talk of Libor plus 525 bps to 550 bps, according to a market source.

Also, the maturity on the term loan was shortened to 5½ years from seven years, the original issue discount widened to 98 from 981/2, and 101 soft call protection for one year was added, the source said.

The 1.5% Libor floor was left unchanged.

Additionally, the 75% cash flow sweep from the Breaking Dawn I and II movies is now less $5 million, as opposed to less $15 million, and the agreement now includes a 50% IPO sweep, whereas before there was no IPO sweep.

The company's now $750 million senior secured credit facility (B1/B), down from $800 million, also includes a $200 million revolver.

J.P. Morgan Securities LLC and UBS Securities LLC are the co-lead arrangers on the deal, with JPMorgan the left lead.

Proceeds will be used to repay existing debt, for working capital needs, for general corporate purposes and to fund a dividend.

Allocations are expected to go out and closing is planned to occur during the week of Feb. 28.

Summit Entertainment is a Santa Monica, Calif.-based independent film studio.

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