Cirque du Soleil sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, June 10 – Cirque du Soleil released price talk on its $615 million seven-year first-lien covenant-light term loan (B1/B+) and $170 million eight-year second-lien covenant-light term loan (Caa1/CCC+) in connection with its bank meeting on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 825 bps to 850 bps with a 1% Libor floor and a discount of 98.5 to 99, the source said.

Also, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $885 million credit facility also includes a $100 million revolver (B1/B+).

Commitments are due on June 24.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, RBC Capital Markets LLC, UBS AG, BMO Capital Markets Corp., National Bank of Canada, Scotiabank and TD Securities (USA) LLC are the bookrunners on the deal, with Deutsche the left lead on the first-lien loan and Bank of America the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by TPG and Fosun Capital. Caisse de depot et placement du Quebec will also acquire a minority interest in the company.

Closing is expected in the third quarter, subject to customary conditions.

Cirque du Soleil is a Montreal-based producer of live artistic entertainment.

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