IMG Worldwide increases first- and second-lien term loan talk

By Sara Rosenberg

New York, March 13 - IMG Worldwide Holdings Inc. lifted talk on its $1.9 billion seven-year covenant-light first-lien term loan (B1/B) to Libor plus 400 basis points to 425 bps from Libor plus 325 bps to 350 bps and on its $450 million eight-year covenant-light second-lien term loan (Caa1/B-) to Libor plus 725 bps from Libor plus 675 bps, according to sources.

Also, the original issue discount on the first-lien term loan was revised to 99 from 991/2, and the 101 soft call protection was extended to one year from six months, sources said.

Both term loans still have a 1% Libor floor, and the second-lien term loan still has a discount of 99 and call protection of 102 in year one and 101 in year two.

The company's $2.45 billion credit facility provides for a $100 million revolver (B1/B) as well.

J.P. Morgan Securities LLC, Barclays, Deutsche Bank Securities Inc. and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of IMG by Silver Lake Partners and William Morris Endeavor Entertainment LLC from Forstmann Little & Co. and to refinance existing debt.

IMG is a New York-based sports, fashion and media business.

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