Thu 12/03/2020 15:07 PM
Arcade Beauty earlier this week disclosed to its lenders a refinancing proposal that includes a $20 million equity injection from sponsor Oaktree Capital and coupon boosts in exchange for debt maturity extensions, according to sources. The proposal was negotiated with and agreed to by certain lenders to its $246.9 million first lien term loan due September 2021, the sources said. Continue reading for our Americas Middle Market team's analysis of the Arcade Beauty equity injection and Request a Trial for access to the our coverage of thousands of other stressed/distressed debt situations.
Under the terms of the proposed transaction, the cosmetics sampling company would extend the maturities of its $20 million unsecured revolver due 2021 and first lien term loan to 2023 and push out the maturity of its $102.5 million second lien term loan due September 2022 to 2024, the sources said. The first lien term loan would receive a 300-bps coupon boost and the second lien loan would get a 100-bps coupon boost, both including PIK elements, they added.
Arcade Beauty did not immediately respond to a request for comment. Oaktree declined to comment.
--Millie Dent, Harvard Zhang
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