CM Group to launch $635 million credit facilities on Tuesday

By Sara Rosenberg

New York, Nov. 8 – CM Group (CMFPL Aus and Finco US) is set to hold a lender call at 10 a.m. ET on Tuesday to launch $635 million of credit facilities, according to a market source.

Jefferies LLC, CIBC, Fifth Third Bank and Golub Capital are the bookrunners on the deal.

The facilities consist of a $45 million five-year revolver and a $590 million seven-year first-lien term loan.

Price talk on the term loan is Libor plus 500 basis points to 525 bps with a 0.75% Libor floor and an original issue discount of 98.5, the source said.

The term loan has 101 soft call protection for six months.

Proceeds will be used to fund the combination of CM Group with Cheetah Digital and refinance the stand-alone debt at each entity.

The existing owners of CM Group, including Insight Partners, will remain majority owners of the combined company. Vector Capital, which was previously a majority owner of Cheetah Digital, will become a substantial minority owner of the combined company.

CM Group is a Nashville-based owner of marketing technology brands. Cheetah Digital is a Chicago-based cross channel customer engagement solution provider.

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