Playboy discloses expected pricing on $180 million credit facility

By Sara Rosenberg

New York, Jan. 24 - Playboy Enterprises Inc. outlined expected pricing on its proposed $180 million credit facility in a commitment letter filed with the Securities and Exchange Commission on Monday.

The $20 million five-year revolver is anticipated to have pricing that can range from Libor plus 600 basis points to 650 bps based on leverage, and the $160 million six-year term loan is expected to be priced at Libor plus 650 bps, the filing said.

Both tranches are expected to include a 1.75% Libor floor, the revolver is expected to have a 75 bps unused fee, and the term loan is expected to have 101 soft call protection for one year.

Jefferies is the lead bank on the deal that is expected to come to market sometime in the near term.

Financial covenants include a maximum total leverage ratio, a minimum interest coverage ratio and minimum EBITDA requirements.

Proceeds will be used to help fund the acquisition of Playboy by Icon Acquisition Holdings LP, a limited partnership controlled by Hugh M. Hefner, for $6.15 per share.

Other funds for the transaction will come from equity committed by Rizvi Traverse Management LLC.

Closing is expected to take place before or shortly after the end of the first quarter, subject to more than 50% of the shares being tendered. It is not subject to financing.

Playboy is a Chicago-based media and lifestyle company.

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