Sesac reveals credit facility structure, price talk with launch

By Sara Rosenberg

New York, Jan. 31 – Sesac Holdings came out with tranching on its $565 million credit facility with its bank meeting on Tuesday and released price talk on the first- and second-lien term loans, according to a market source.

The facility consists of a $40 million revolver (B2/B+), a $365 million first-lien term loan (B2/B+) and a $160 million second-lien term loan (Caa2/CCC+), the source said.

Price talk on the first-lien term loan is Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 750 bps with a 1% Libor floor and a discount of 99, the source continued.

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

Jefferies Finance LLC, Guggenheim and Blackstone are the leads on the deal.

Commitments are due on Feb. 10, the source added.

Proceeds will be used to help fund the buyout of the company by Blackstone from Rizvi Traverse Management.

Closing is expected by the end of this quarter.

Sesac is a Nashville, Tenn.-based music rights organization.

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