Time launches extension of $764 million bank debt with price talk

By Paul A. Harris

Portland, Ore., Sept. 22 – Time Inc. launched an extension of $764 million of bank debt (Ba2/BB-) on Friday, according to a market source.

The institutional tranche is a $464 million seven-year senior secured term loan B priced at Libor plus 350 basis points atop a 1% Libor floor at 99.5, with soft call protection reset at 101 for six months.

Commitments are due at noon ET on Oct. 2.

Citigroup Global Markets Inc. is the left lead arranger and administrative agent. Morgan Stanley, BofA Merrill Lynch, Barclays, BNP Paribas and JPMorgan are also joint lead arrangers.

The deal includes a $300 million five-year revolver.

There is also an incremental facility with a $350 million starter basket with additional amounts subject to a net secured leverage ratio of 2.5-times.

The term loan features a springing maturity if more than $100 million of the company's senior notes due 2022 are still outstanding 91 days prior to April 15, 2022.

There are mandatory prepayments as designated in the existing credit facility.

Time is a New York-based consumer media company.

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