Daily News: May 2, 2014

Credit Suisse Arranges $235MM Term Loan, $15MM Revolver

Mood Media Corporation announced that it has successfully raised a new $235 million term loan and a $15 million revolving credit facility to replace the company’s existing first lien bank debt and revolving credit facility.

Credit Suisse Securities acted as the lead arranger for the new credit facilities.

The new facilities will bear an interest rate of LIBOR plus 6% per annum, a LIBOR floor of 1% and will mature in May 2019, which will extend the Company’s debt maturity schedule by one year. The terms of the new financing provide Mood Media with expanded covenant flexibility including a key provision permitting the Company to use proceeds from future asset divestitures to repay specified unsecured debt including its convertible debentures.

Collateral under the new agreement will be substantially identical to the existing first lien facility. Proceeds of the new term loan will be used to repay outstanding indebtedness under its existing first lien term loan, the revolving credit facility, related transactional expenses, and provide $8 million in cash to strengthen the balance sheet.

Mood Media CFO Tom Garrett commented, “The successful placement of this transaction was supported by strong interest from a broad cross-section of investors and we believe it demonstrates the increasing confidence the investment community has in our strategy as well as our management team’s ability to execute. Our new leadership has rapidly built a track record of execution. We are driving efficiencies, synergies and growth that we believe will build shareholder value. The new financing, with its improved terms, will strengthen our capital structure, enhance our liquidity, allow us to use non-core asset sales to address our convertible debentures and overall leverage and, ultimately position Mood to make further investments in future growth. This important milestone, which was part of the management team’s overall plan to increase Mood stakeholder value, demonstrates our continued progress executing on our operational and strategic priorities.”

Mood Media Corporation is one of the world’s largest designers of in-store consumer experiences, including audio, visual, interactive, scent, voice and advertising solutions.