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Credit Suisse Agents Mood Media’s Credit Facility Amendment

Date: Nov 28, 2016 @ 07:15 AM
Filed Under: Media

Mood Media Corporation, announced it has entered into the First Amendment to Credit Agreement (the “Amendment”) which amends its Credit Agreement, dated as of May 1, 2014, among Mood Media Corporation, the guarantors thereto, Credit Suisse AG, as administrative agent and a syndicate of lenders.

The primary modifications to the Credit Agreement implemented by the Amendment are:

  • Elimination of the provision that permitted proceeds from asset dispositions, not otherwise used to prepay outstanding loans, cash collateralized letters of credit or for reinvestment, to prepay the Company’s 9.25% Senior Unsecured Notes, due 2020.
  • Reduction of the eligible amount of investment in equity interests, loans and advances made by the Company or its subsidiary guarantors to its non-guarantor subsidiaries to $20 million from $40 million.
  • Addition of a 2.00:1.00 secured leverage ratio as a maximum threshold required prior to making permitted restricted payments, as defined in the credit agreement.
  • Maintenance of the interest coverage ratio used for covenant purposes at 1.50:1.00 until maturity. This covenant ratio had been scheduled to step up to 1.75:1.00 at March 31, 2017.

Steve Richards, the company’s President and Chief Executive Officer, stated, “We are very pleased to have received the support of our First Lien lender group for this Amendment. The Amendment preserves the same interest coverage operating flexibility through maturity that we have had since the May 2014 inception of the First Lien facilities, and permits management to continue to focus on the execution of Mood’s transformation agenda.”

The Company’s first lien term loan and revolving credit commitments are scheduled to mature in May, 2019.

Mood Media is the global leader in elevating Customer Experiences. With more than 500,000 active client locations around the globe, Mood combines sight, sound, scent, social mobile technology and systems to create greater emotional connections between brands and consumers. Mood’s clients include businesses of all sizes and market sectors, from the world’s most recognized retailers and hotels to quick-service restaurants, local banks and thousands of small businesses.

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