Alliance Entertainment signs $120 million three-year revolver

By William Gullotti

Buffalo, N.Y., Dec. 28 – Alliance Entertainment Holding Corp. entered a new $120 million three-year senior secured revolving credit facility with White Oak Commercial Finance, LLC as administrative agent on Dec. 21, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings bear interest at SOFR plus a margin ranging from 450 basis points to 475 bps, subject to a floor of 2%, with the margin dependent upon facility utilization and the company’s consolidated fixed charge coverage ratio.

The revolver also includes a 50 bps commitment fee on the unused portion of the revolver.

There is also an early termination fee if the revolver’s commitments are reduced or otherwise terminated. The fee will be 2% prior to Dec. 21, 2024, stepping down to 1% until Aug. 21, 2025. An amount of minimum interest will also be assessed if the facility is reduced or terminated on or prior to June 21, 2025.

Alliance is required to maintain a fixed charge coverage ratio of at least one-to-one, calculated monthly.

The new secured facility replaces a prior ABL facility provided by Bank of America.

White Oak is also acting as collateral agent.

Alliance Entertainment is a Sunrise, Fla.-based distributor of music, movies and consumer electronics.

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