Fanatics launches $500 million term loan B at Libor plus 325-350 bps

By Sara Rosenberg

New York, Nov. 9 – Fanatics Commerce launched on Tuesday its $500 million seven-year senior secured term loan B (Ba3/BB-) with price talk of Libor plus 325 basis points to 350 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Security is a perfected first priority lien on substantially all tangible and intangible assets, other than the ABL collateral, and capital stock owned by the borrower and guarantors, limited to 65% of the capital stock of first tier foreign subsidiaries, and a second priority lien on the ABL collateral, subject to customary exceptions.

Mandatory prepayments are from 50% of excess cash flow, subject to leverage-based step-downs, 100% of non-ordinary course asset sale proceeds, subject to reinvestment rights and leverage-based step-downs, 100% of prohibited debt issuance proceeds and 100% of insurance recovery and condemnation events, subject to reinvestment rights.

Citigroup Global Markets Inc. is the lead arranger and administrative agent on the deal.

Commitments are due at noon ET on Nov. 18, the source added.

Proceeds will be used to fund the growth of the company through investment into new, highly synergistic verticals and fan products, and for general corporate purposes.

Closing is expected this month.

Fanatics Commerce is a Jacksonville, Fla.-based designer, manufacturer and distributor of fan gear, jerseys, headwear and hardgoods.

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