NAI Entertainment flexes $300 million term B to Libor plus 250 bps

By Sara Rosenberg

New York, April 20 – NAI Entertainment Holdings LLC reduced pricing on its $300 million seven-year covenant-light term loan B (B1/BB) to Libor plus 250 basis points from talk in the range of Libor plus 275 bps to 300 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

The term loan still has a 1% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Mandatory prepayments are, commencing fiscal year-end 2019, 50% of excess cash flow when total leverage is more than 4.5 times, 25% when total leverage is more than 4 times and 0% when total leverage is less than 4 times.

Wells Fargo Securities LLC is the lead arranger on the deal.

Commitments are due at noon ET on Monday, accelerated from noon ET on Tuesday, the source added.

Proceeds will be used to refinance $300 million of senior secured notes due 2018.

NAI is a motion picture company with a diversified portfolio of theatre and other real estate assets in the United States, United Kingdom, Brazil and Argentina as well as equity interests in Viacom Inc. and CBS Corp.

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