Octave Music seeks $20 million add-on loan, amendment and extension

By Sara Rosenberg

New York, May 10 – Octave Music Group Inc. is in market with a fungible $20 million add-on first-lien term loan due May 2023 and an amendment and extension of its existing first- and second-lien term loans, according to a market source.

Citizens Bank is the lead on the deal that launched with a lender call on Thursday.

The add-on first-lien term loan is talked at Libor plus 475 basis points with a 1% Libor floor and an original issue discount of 99.5, the source said.

The company is looking to extend its existing $232 million first-lien term loan by two years to May 2023 and $47.5 million of its existing second-lien term loan by two years to May 2024.

The second-lien term loan is sized at $77.5 million but will be paid down with proceeds from the add-on first-lien term loan and $10 million of cash on hand, the source continued.

Pricing on the extended first-lien term loan is Libor plus 475 bps with a 1% Libor floor, and pricing on the extended second-lien term loan is Libor plus 825 bps with a 1% Libor floor, in line with current first- and second-lien loan pricing.

The add-on and extended first-lien term loan debt will get 101 soft call protection for six months and the extended second-lien term loan will get 101 hard call protection for six months.

Existing first- and second-lien term loan lenders are being offered a 25 bps extension/amendment fee.

Commitments and consents are due on May 20, the source added.

Octave Music, formerly known as TouchTunes Networks Interactive Inc., is a New York-based interactive entertainment platform.

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