Mood Media Corporation

• 5/22/17 Recap: Publicly-traded (on the Canadian exchange) provider of sound, sight, and scent solutions for retail, restaurant and hospitality companies has filed for CBCA and Chapter 15 to effectuate a deleveraging transaction. The transaction in brief: noteholders are swapping their 9.25% notes for $500mm new second lien notes and common stock in the reorganized company (subject to upsize via rights offering participation). Equity will get 17 cents on the dollar. The company will also install a $315mm first lien facility. So, it sounds like the company will still have a f*ck-ton of debt on it. But we're just thankful that the company that brags that "We Put People in the Mood to Buy" will still be providing customers of Qdoba, McDonald's & Ikea, to name a few, with the full sensory experience that inspires needless consumerism of unhealthy and/or bad quality food and wares. Those annoying text message offers you might randomly get? Yeah, it's possible that's from Mood Media. Remember muzak? Yeah, that's also Mood Media. Muzak filed for bankruptcy back in February '09 (with Kirkland & Ellis as counsel then too) and emerged a year later with Silver Point Capital Management as the majority owner. Mood Media then bought Muzak for $345mm in March 2011. Pursuant to this transaction, Apollo Global Management LP and GSO Capital Partners will own this sucker.
• Jurisdiction: S.D. of New York
• Capital Structure: $250mm first lien term loan (Credit Suisse AG), $350mm '20 9.25% senior unsecured notes (Bank of New York Mellon), $50mm '23 10% senior unsecured MMGSA notes (Computershare Trust Company NA)(subsidiary level)    
• Company Professionals:
  • Legal: Kirkland & Ellis LLP (James Sprayragen, Edward Sassower, Joshua Sussberg, Adam Paul, Bradley Giordano, Whitney Fogelberg) & (Canadian counsel) Stikeman Elliott LLP (Alexander Rose)
  • Financial Advisor: Allen & Company LLC
  • Investment Banker: Origin Merchant Partners
  • Claims Agent: JND Legal Administration (*click on company name above for free docket access)
• Other Parties in Interest:
  • MMGSA noteholders: GSO Capital Partners LP, Apollo Global Management LLC
    • Legal: Paul Weiss Rifkind Wharton & Garrison LLP (Robert Agar) & (Canadian counsel) Goodmans LLP (Brendan O'Neill)
    • Financial Advisor: Credit Suisse
  • New Lender: HPS Investment Partners LLC
  • The Bank of New York Mellon & BNY Trust Company of Canada
    • Legal: Emmet Marvin & Martin LLP (Edward Zujkowski, Thomas Pitta)

Updated 7/11/17