Allen Media tweaks term loan B amortization, breaks for trading above OID

By Sara Rosenberg

New York, Aug. 24 – Allen Media LLC modified amortization for a second time on its $375 million five-year term loan B (B2/B), and then the debt freed up for trading on Friday, according to a market source.

Amortization on the loan was changed to 5% in years one, two, three and four, and 7.5% in year five, from revised talk of 2.5% in years one and two, 5% in years three and four, and 7.5% in year five, and initial talk of 1% per annum, the source said.

Pricing on the term loan B is Libor plus 650 basis points with a 1% Libor floor, and it was sold at an original issue discount of 97.5. The debt has hard call protection of 102 in year one and 101 in year two.

Earlier in syndication, the term loan B was downsized from $500 million, pricing was increased from Libor plus 600 bps, the discount widened from 99, the hard call protection was revised from 101 for one year and the maturity was shortened from seven years.

Also previously, the maximum total leverage ratio was modified to 5 times with step-downs, from 6 times with step-downs, and the accordion was changed to $100 million plus unlimited up to 2.75 times gross leverage from $100 million and 100% of LTM consolidated EBITDA plus unlimited up to a first-lien net leverage ratio to be determined.

In the afternoon, Allen Media’s term loan B made its way into the secondary market, and levels were quoted at 97½ bid, 98¼ offered, a trader added.

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