RBmedia flexes add-on term B to Libor plus 425 bps, adds repricing

By Sara Rosenberg

New York, Feb. 7 – RBmedia lowered pricing on its fungible $350 million add-on first-lien term loan B (B3/B-) due Aug. 31, 2025 to Libor plus 425 basis points from Libor plus 450 bps and added a 25 bps step-down at 0.5x turn inside closing date first-lien net leverage, according to a market source.

As a result, the company is now also seeking a repricing of its existing $331 million first-lien term loan B due Aug. 31, 2025 to Libor plus 425 bps with a 25 bps step-down at 0.5x turn inside closing date first-lien net leverage, from the current rate of Libor plus 450 bps, the source said.

Furthermore, the company tightened the original issue discount on its add-on term loan B to 99.75 from 99.5.

The repricing is offered at par for existing lenders and at 99.75 for new money, the source continued.

All of the term loan B debt has a 0% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA, KKR Capital Markets, Morgan Stanley Senior Funding Inc., ING Capital Markets and SunTrust Robinson Humphrey Inc. are the leads on the deal.

Recommitments for the add-on term loan were scheduled to be due at the close of business on Friday, and repricing signature pages are due at noon ET on Monday, the source added.

Proceeds from the add-on term loan will be used to fund the acquisition of OverDrive Inc., a digital reading platform for libraries and schools, by KKR from Rakuten USA.

RBmedia is a Landover, Md.-based digital audiobook and related spoken-word content producer.

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