Authentic Brands launches $1.07 billion credit facilities to investors

By Sara Rosenberg

New York, Sept. 19 – Authentic Brands Group launched $1.07 billion of credit facilities on its call on Tuesday, according to a market source.

The facilities consist of a $75 million revolver (B), a $685 million seven-year first-lien term loan (B) and a $310 million eight-year second-lien term loan (CCC+), the source said.

Price talk on the first-lien term loan is Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 99, the source continued.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch is the left lead bank on the deal.

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

Proceeds will be used to help refinance existing credit facilities, fund a dividend payment and finance an acquisition.

Authentic Brands is a New York-based brand development and licensing company.

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