Authentic Brands finalizes $1.597B term loan repricing

Lead arranger BofA Securities has finalized terms on the repricing of Authentic Brands Group LLC's $1.597 billion term loan B due September 2024, according to sources. Allocations are planned for Feb. 2.

Final pricing is L+325, versus guidance of L+300-325 at launch, with a 0.75% Libor floor and an issue price of par. The 101 soft call protection will be reset for six months with this transaction. At final terms, the yield to maturity is 4.06%.

With this transaction, the issuer lowers pricing on the loan from L+350, with a 1% floor.

Current corporate and facility ratings are B/B2, and the borrower is ABG Intermediate Holdings 2 Inc.

The issuer originally placed the TLB in September 2017 and has since increased it through several add-on transactions, including a $400 million placement in January 2020 to repay its second-lien term loan. Authentic Brands returned to market in July 2020 with a $200 million non-fungible incremental TLB due September 2024 (L+525, 1% floor) for acquisition financing and for general corporate purposes.

Authentic Brands is a New York–based brand development and licensing company. BlackRock is the company's largest investor, alongside Leonard Green & Partners, General Atlantic, Lion Capital, Simon Property Group, Brookfield Properties' retail group and other investors.