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Authentic Brands launches $410 million in term loans to investors
By Sara Rosenberg
New York, April 3 – Authentic Brands Group LLC (ABG Intermediate Holdings 2 LLC) held a lender call at 2 p.m. ET on Tuesday to launch $410 million in term loans, according to a market source.
Bank of America Merrill Lynch, Barclays and KeyBanc Capital Markets are the lead arrangers on the deal.
The debt consists of a fungible $250 million covenant-light first-lien term loan due Sept. 29, 2024, a fungible $90 million delayed-draw covenant-light first-lien term loan due Sept. 29, 2024, a fungible $50 million covenant-light second-lien term loan due Sept. 29, 2025 and a fungible $20 million delayed-draw covenant-light second-lien term loan due Sept. 29, 2025, the source said.
Price talk on the first-lien term loan debt is Libor plus 350 basis points 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 with a 1% Libor floor and a discount of 99.5, the source continued.
The new and existing first-lien term loan debt will get 101 soft call protection for six months, and the second-lien term loan debt has hard call protection of 102 and then 101.
The debt has a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.
Expected first-lien loan ratings are B1/B+ and expected second-lien loan ratings are Caa1/CCC+.
Proceeds will be used to fund the acquisition of Nautica from VF Corp., as well as other upcoming acquisitions, and to put cash on the balance sheet.
Commitments are due at noon ET on April 10, the source added.
Authentic Brands is a New York-based acquirer and manager of consumer brands in the fashion, sports and celebrity/entertainment sectors.
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