SMG shifts funds between first- and second-lien loans, cuts pricing

By Sara Rosenberg

New York, Jan. 10 – SMG Holdings Inc. (Stadium Management Group) upsized its seven-year first-lien covenant-light term loan to $415 million from $395 million and downsized its eight-year second-lien covenant-light term loan to $180 million from $200 million, according to a market source.

In addition, pricing on the first-lien term loan was lowered to Libor plus 325 basis points from Libor plus 350 bps and pricing on the second-lien term loan was cut to Libor plus 700 bps from Libor plus 750 bps, the source said.

Also, the original issue discount on the first-lien term loan was changed to 99.875 from 99.5 and the discount on the second-lien term loan was revised to 99.75 from 99.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 0% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s $650 million of credit facilities also provide for a $55 million revolver.

Jefferies LLC, Nomura and Macquarie Capital (USA) Inc. are the lead arrangers on the deal, with Jefferies the left lead on the first-lien and Nomura the left lead on the second-lien.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by Onex Corp.

Closing is expected early this year, subject to customary conditions and regulatory approvals.

SMG is a Philadelphia-based manager of convention centers, stadiums, arenas, theaters, performing arts centers and other venues.

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