Creative Artists, Dave & Buster’s term loans free to trade; Avaya sets revisions

By Sara Rosenberg

New York, June 23 – Creative Artists Agency revised the original issue discount on its term loan B-2 before breaking for trading on Thursday, and Dave & Buster’s Inc. saw its term loan B hit the secondary market as well.

In more happenings, Avaya reduced the size of its first-lien term loan, increased pricing, revised the issue price, added an upfront fee and sweetened the call protection.

Creative updated, trades

Creative Artists Agency adjusted the original issue discount on its $325 million term loan B-2 due November 2026 (B2/B) to 96.25 from 96, a market source said.

The term loan is still priced at SOFR plus 425 basis points with a 1% floor and has 101 soft call protection for six months.

On Thursday, the term loan B-2 freed to trade, with levels quoted at 96¼ bid, 97 offered, another source added.

BofA Securities Inc., Mizuho, Credit Suisse Securities (USA) LLC, Truist, UBS Investment Bank and Nomura are leading the deal that will be used to help fund the acquisition of International Creative Management LLC, a talent agency.

Creative Artists is a talent and literary agency.

Dave & Buster’s breaks

Dave & Buster’s $850 million seven-year covenant-lite term loan B (B1/B) made its way into the secondary market on Thursday, with levels quoted at 95¼ bid, 95¾ offered, according to a market source.

Pricing on the term loan is SOFR+10 bps CSA plus 500 bps with a 0.5% floor and it was sold at an original issue discount of 95. The debt has 101 soft call protection for one year.

During syndication, pricing on the term loan was increased from SOFR plus 450 bps, the discount widened from talk in the range of 96 to 97, the call protection was extended from six months, changes were made to MFN, accordion, asset sale sweeps, restricted payments, indebtedness, investments in unrestricted subsidiaries, joint ventures and similar businesses and adjusted EBITDA/“pro forma basis,” and the cumulative credit was removed.

Dave & Buster’s leads

Deutsche Bank Securities Inc., JPMorgan Chase Bank, BMO Capital Markets, Wells Fargo Securities LLC, Truist, Capital One and Fifth Third are leading Dave & Buster’s term loan.

Proceeds will be used with cash on hand to fund the acquisition of Main Event Entertainment Inc., a Dallas-based family entertainment concept, from Ardent Leisure Group Ltd. and RedBird Capital Partners in a transaction with a total enterprise value of $835 million.

Closing is expected this year, subject to customary conditions, including approval by Ardent Leisure stockholders and regulatory review.

Dave & Buster’s is a Coppell, Tex.-based owner and operator of entertainment and dining venues.

Avaya reworked

Avaya scaled back its first-lien term loan due December 2027 to $350 million from $500 million and is now getting a $150 million privately placed senior secured convertible note, a market source remarked.

Additionally, pricing on the term loan was lifted to SOFR plus 1,000 bps from SOFR plus 900 bps, the issue price was changed to par from 96, a 10 points upfront fee was added, the call protection was modified to non-callable for three years, then at 104 in year four, with a bankruptcy make-whole, from non-callable for two years, then at 101 in year three, with a bankruptcy make-whole, and some changes were made to documentation, the source continued.

The 1% floor on the term loan was unchanged.

Recommitments are due at noon ET on Friday, the source added.

Goldman Sachs Bank USA is the left lead on the deal that will be used with the convertible note to prefund the refinancing of the company’s existing $350 million convertible debt due June 2023, to provide additional liquidity for general corporate purposes and to pay transaction fees and expenses.

Avaya is a Santa Clara, Calif.-based provider of communication software and services for enterprises.

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