Cast & Crew finalizes spreads on first- and second-lien term loans

By Sara Rosenberg

New York, Aug. 3 – Cast & Crew Entertainment Services firmed pricing on its $270 million seven-year first-lien term loan (B2/B+) at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, and on its $95 million eight-year second-lien term loan (Caa2/CCC+) at Libor plus 775 bps, the tight end of the Libor plus 775 bps to 800 bps talk, according to a market source.

Also, the original issue discount on the first-lien term loan was set at 99.5, the tight end of the 99 to 99.5 guidance, and the discount on the second-lien term loan was revised to 99.25 from 99, the source said.

In addition, the 101 soft call protection on the first-lien term loan was extended to one year from six months, and the MFN sunset provision was removed.

Both term loans still have a 1% Libor floor, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

The company’s $430 million credit facility also includes a $65 million five-year revolver (B2/B+).

Recommitments were due at 2 p.m. ET on Monday, the source added.

RBC Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Societe Generale are leading the debt.

Proceeds will be used to help fund the buyout of the company by Silver Lake from ZM Capital.

Closing is subject to customary conditions.

First-lien leverage is 4.4 times, and total leverage is around 6 times.

Cast & Crew is a Burbank, Calif.-based provider of technology-enabled payroll, production accounting and related value-added services to the entertainment industry.

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