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NEP Broadcasting cuts second-lien term loan amount to $140 million
By Sara Rosenberg
New York, Jan. 14 - NEP Broadcasting LLC downsized its 71/2-year covenant-light second-lien term loan (Caa1/CCC+) to $140 million from a most recent size of $150 million and an initial amount of $165 million, according to a market source.
The source explained that the company had more cash than initially anticipated, so less debt is needed for its already completed buyout by Crestview Partners from American Securities LLC.
Pricing on the second-lien term loan is Libor plus 825 basis points, after flexing earlier from talk of Libor plus 875. There is a 1.25% Libor floor and an original issue discount of 99 that was changed previously from 98.
Call protection on the second-lien loan is 103 in year one, 102 in year two and 101 in year three.
The company's now $670 million senior secured credit facility, down from $680 million, also includes a $60 million five-year revolver (B1/B) that has a springing covenant and a $470 million covenant-light seven-year first-lien term loan (B1/B).
Pricing on the first-lien term loan is Libor plus 400 bps with a 1.25% Libor floor and an original issue discount of 991/2.
Earlier, the first-lien loan was upsized from $455 million, pricing was reduced from Libor plus 425 bps and the discount was tightened from 99.
The first-lien term loan has 101 soft call protection for one year.
Barclays, Morgan Stanley Senior Funding Inc. and GE Capital Markets Corp. are the joint lead arrangers on the first-lien debt, with Barclays the left lead, and Morgan Stanley and Barclays are leading the second-lien loan, with Morgan Stanley the left lead.
NEP is a Pittsburgh-based provider of outsourced teleproduction services critical to the delivery of live sports and entertainment events.
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