Beats Electronics Seeks $700 Million in Loans; Allflex Sets Rate
Beats Electronics LLC, the headphone maker founded by music producer Jimmy Iovine and rapper Dr. Dre, is seeking $700 million in loans for a dividend and to repay debt, while Allflex Holdings set the rate on $810 million of financing that will back its buyout by BC Partners.
Barclays Plc, Citigroup Inc. and JPMorgan Chase & Co. are arranging the loans for Beats Electronics, including a $500 million term B portion and a $200 million revolving line of credit, according to a person with knowledge of the transaction, who asked not to be identified because terms are private.
Allflex, a maker of identity tags for animals, is proposing to pay interest on a $540 million term loan B at 3.25 percentage points to 3.5 percentage points more than the London interbank offered rate with a 1 percent minimum on the lending benchmark, said a person with knowledge of the deal, who also asked not to be identified because the financing is private.
A $270 million second-lien portion may pay interest at 7 percentage points to 7.25 percentage points more than Libor with a 1 percent minimum.
Blue Coat Systems Inc., a maker of Internet-security software controlled by Thoma Bravo LLC, received a $675 million term loan to refinance debt and fund acquisitions, according to a person with knowledge of the transaction.
The six-year financing will pay interest at 3.5 percentage points more than Libor, with a 1 percent minimum on the lending benchmark, said the person who asked not to be identified because terms are private.
Quicksilver Resources Inc. (KWK), the energy producer based in Fort Worth, Texas, is seeking a $600 million, second-lien loan due in six years to back a bond tender offer and for general corporate purposes.
The covenant-light loan will help finance a tender offer for Quicksilver’s 7.125 percent notes due in 2016, its 11.75 percent bonds due in 2016 and its 8.25 percent securities maturing in 2015, the company said today in a regulatory filing.
CSM NV’s bakery supplies business and BlackBrush TexStar LP shifted funds in debt they are raising in the loan market, according to people with knowledge of the deals.
The bakery business, which is seeking $1 billion of loans to back its buyout by Rhone Capital LLC, increased its first-lien term loan to $700 million from $650 million, while a $150 million second-lien piece decreased from $200 million.
BlackBrush TexStar, an oil and gas business backed by EIG Global Energy Partners and HM Capital, reduced the size of a term loan it’s seeking to $640 million from $675 million, shifting the $35 million into a revolving credit line, according to a person with knowledge of the transaction.
Loan prices fell 0.12 cent today to 98.76 cents on the dollar, the biggest drop since Jan. 31, according to the S&P/LSTA U.S. Leveraged Loan 100 Index.
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