Hemisphere Media to launch $370 million term loan on Thursday

By Sara Rosenberg

New York, July 27 – Hemisphere Media Holdings LLC is scheduled to hold a lender call at 1 p.m. ET on Thursday to launch a $370 million seven-year covenant-lite term loan B, according to a market source.

Wells Fargo Securities LLC, Truist Bank, Fifth Third Bank and Deutsche Bank Securities Inc. are the lead arrangers on the deal.

The term loan has 101 soft call protection for one year and amortization of 1% per annum, the source said.

Security is a first lien on substantially all assets of Holdings, the borrower and the guarantors.

Commitments are due at noon ET on Aug. 11, the source added.

Proceeds will be used to help fund the acquisition by Gato Investments LP of the 61% of Hemisphere Media that it does not currently own.

Under the agreement, Gato Investments, a portfolio investment of Searchlight Capital Partners LP, is buying Hemisphere Media for $7.00 per share.

The buyout by Gato is expected to close in the third quarter, subject to customary conditions, including approval by Hemisphere Media stockholders and receipt of regulatory approvals.

Hemisphere Media is a Coral Gables, Fla.-based pure-play media company targeting the U.S. Hispanic and Latin American markets.

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