WHP Global completes $450M term loan; terms

WHP Global has completed a $450 million, five-year covenant-lite term loan B at a pricing of 550 basis points over the secured overnight financing rate, with a 0.5% floor and an original issue discount of 98 via a Morgan Stanley-led arranger group, according to sources. Pricing was finalized at the wide end of talk and the call protection was revised to a 101 hard call for 12 months, from 12 months of soft call.

Proceeds from the transaction will be used to refinance the issuer's existing term loan, capitalize the balance sheet for future acquisitions and fund a distribution to shareholders. The dividend will total $50 million, according to S&P Global Ratings. Additional financing includes a $50 million revolver due 2026 with a springing first-lien net leverage covenant.

WHP Global, backed by Oaktree Capital Management, is a brand acquisition and development platform that monetizes brands via an asset-lite licensing business model.

Terms: