Entertainment Benefits Group received an equity injection from the company’s sponsor in the recent quarter.
“We own $35 million of the company's $235 million first-lien credit facility. In light of the COVID outbreak, and the expected impact on financial performance, we recently reset covenants in exchange for an equity infusion from the sponsor, along with enhanced pricing and improved reporting rights,” said Brian Gerson, head of private credit at FS Investments, during an earnings call for FS KKR Capital Corp. on Aug. 11.
Part of FS KKR Capital’s holding in Entertainment Benefits Group was a $30 million, L+575 (1% Libor floor) loan due 2025 to the company. The loan’s fair value as of June 30 was $27 million, FS KKR’s 10-Q filing showed.
Another lender, Owl Rock Capital Corp, showed loans to Entertainment Benefits Group as an $80 million, L+825 (including 2.50% pay-in-kind) first-lien loan due 2025, and a $10 million, L+825 (including 2.50% pay-in-kind) revolver due 2024. Fair values for the loans as of June 30 were $74 million and $9 million, respectively.
Entertainment Benefits Group is a portfolio company of CAA Ventures. In February, Entertainment Benefits Group announced the acquisition of Recreation Connection, a California-based company offering entertainment ticket and services program at over 2,500 companies.
In September 2019, Entertainment Benefits Group announced the acquisition of Beneplace Inc., a voluntary benefit platform provider that reaches more than 9 million people.
Florida-based Entertainment Benefits Group develops, owns and operates ticketing systems and platforms for travel and entertainment markets in the United States. The company also operates TicketsAtWork, a corporate benefits program.
FS KKR Capital trades as FSK on the New York Stock Exchange. Owl Rock Capital Corp. trades as ORCC on NYSE. Both are business development companies that lend to private U.S. middle-market companies.
Article amended on Aug. 14 at 2:29 p.m. ET due to an erroneous characterization of a loan to Entertainment Benefits Group as having non-accrual status. The borrower received an equity infusion from its sponsor as part of a reset of covenants in the quarter ended June 30.