WHP Global sets price talk for $450M term loan; commitments due Feb. 8

A Morgan Stanley-led arranger group has set price talk on the $450 million term loan B for WHP Global, according to sources. Commitments are due by 5 p.m. ET on Feb. 8.

The five-year covenant-lite term loan is offered at a spread of 550 basis points over the secured overnight financing rate, with a 0.5% floor and an original issue discount in the range of 98-99. Lenders are offered 12 months of 101 soft call protection, and there is no credit spread adjustment. At talk, yield to maturity is approximately 6.39%-6.64%.

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. 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 a 3 recovery rating from S&P Global Ratings and a stable outlook from both Ratings and Moody's. The borrower is WH Borrower LLC.

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