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Fanatics firms $500 million term loan B at Libor plus 325 bps
By Sara Rosenberg
New York, Nov. 18 – Fanatics Commerce finalized pricing on its $500 million seven-year senior secured term loan B (Ba3/BB-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.
As before, the term loan has a 0.5% Libor floor, an original issue discount of 99.5, 101 soft call protection for six months and amortization of 1% per annum.
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., BofA Securities Inc., JPMorgan Chase Bank, Barclays, BNP Paribas Securities Corp., PNC, Truist, BMO Capital Markets, Goldman Sachs Bank USA, HSBC Securities (USA) Inc. and Mizuho are the lead arrangers on the deal. Citigroup is the administrative agent.
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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