Authentic Brands shifts funds between term loans, updates pricing

By Sara Rosenberg

New York, Sept. 26 – Authentic Brands Group upsized its seven-year first-lien term loan to $725 million from $685 million and downsized its eight-year second-lien term loan to $270 million from $310 million, according to a market source.

In addition, pricing on the first-lien term loan was lowered to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps, and pricing on the second-lien term loan was set at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, the source said.

Also, the original issue discount on the second-lien term loan was tightened to 99.25 from 99.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor and hard call protection of 102 in year one and 101 in year two.

The company’s $1.07 billion of credit facilities also include a $75 million revolver.

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

Recommitments were scheduled to be due at 10:30 a.m. ET on Tuesday, 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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