Authentic Brands to launch $100 million in term loans on Wednesday

By Sara Rosenberg

New York, June 19 – Authentic Brands Group LLC (ABG Intermediate Holdings 2 LLC) is set to hold a lender call at 9:30 a.m. ET on Wednesday to launch $100 million in incremental 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 $70 million incremental covenant-light first-lien term loan due Sept. 29, 2024 and a $30 million incremental covenant-light second-lien term loan due Sept. 29, 2025, the source said.

Price talk on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99.5 to 99.75, and talk on the second-lien term loan is Libor plus 775 bps with a 1% Libor floor and a discount of 99.5 to 99.75, the source continued.

The incremental first-lien term loan has 101 soft call protection through Oct. 30, like the existing first-lien term loan, and the incremental second-lien term loan has the same 102, 101 hard call protection as the existing second-lien term loan.

Proceeds will be used with borrowings under the company’s existing $90 million delayed-draw first-lien term loan and $30 million delayed-draw second-lien term loan to fund the acquisition of Nine West and Bandolino brands, and pay associated fees and expenses.

Commitments are due at 5 p.m. ET on Wednesday, 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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