WHP Global firms pricing on $450M term loan; allocations expected today

A Morgan Stanley-led arranger group has firmed pricing at the wide end of talk on the $450 million term loan B for WHP Global and made some documentation changes as well, according to sources. Investors are being told to expect pricing and allocations today.

Pricing for the five-year covenant-lite term loan is 550 basis points over the secured overnight financing rate, with a 0.5% floor and an original issue discount of 98, versus a range of 98-99 at launch. There is no credit spread adjustment. Lenders are offered 12 months of 101 hard call protection, revised from 12 months of soft call.

At revised terms, the yield to maturity is 6.64%.

Deutsche Bank and Credit Suisse are also joint lead arrangers on the deal.

Rating agencies have assigned first-lien term loan and issuer ratings of B-/B2, with stable outlooks, and with a 3 recovery rating on the loan from S&P Global Ratings. The borrower is WH Borrower LLC.

Additional financing includes a $50 million revolver due 2026 with a springing first-lien net leverage covenant.

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 Ratings.

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