Hemisphere Media launches $370 million loan at SOFR plus 575-600 bps

By Sara Rosenberg

New York, July 28 – Hemisphere Media Holdings LLC launched on Thursday its $370 million seven-year covenant-lite term loan B (B2/B) with price talk of SOFR plus 575 basis points to 600 bps with a 0.5% floor and an original issue discount of 90 to 91, according to a market source.

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

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

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

Commitments are due at noon ET on Aug. 11.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.