WHP Global launches $150 million term loan at SOFR plus 550 bps

By Sara Rosenberg

New York, Jan. 9 – WHP Global (WH Borrower LLC) was scheduled to hold a lender call at 11 a.m. ET on Monday to launch a non-fungible $150 million covenant-lite first-lien term loan B due Feb. 15, 2027 (B2/B) that is talked at SOFR plus 550 basis points with a 0.5% floor and an original issue discount of 96, according to a market source.

The term loan has call protection of 105 for life that is required on all mandatory and optional prepayments, 0 bps CSA and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc. is the sole bookrunner on the deal.

Commitments are due at noon ET on Wednesday, the source added.

Proceeds will be used to help fund the $235 million acquisition of 60% of the Express intellectual property joint venture, which is intended to scale the Express apparel brand through new domestic category licensing and international expansion opportunities. Express Inc., a fashion apparel retailer, will own 40% of the joint venture.

The intellectual property joint venture implies a total value of the Express brand’s intellectual property at about $400 million.

Closing is expected in Express’ fourth fiscal quarter of 2022, subject to lender consent, regulatory approvals and customary conditions.

WHP is a New York-based brand management firm.

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