Cetera sets spread on $750 million term loan at SOFR plus 450 bps

By Sara Rosenberg

New York, March 7 – Cetera Financial Group (Aretec Group Inc.) firmed pricing on its non-fungible $750 million seven-year incremental first-lien term loan (B1/B) at SOFR plus 450 basis points, the low end of the SOFR plus 450 bps to 475 bps talk, according to a market source.

In addition, the original issue discount on the term loan was tightened to 98 from 97, the source said.

The term loan still has a 0% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, 101 soft call protection for six months from the closing date, and a ticking fee of half the margin from days 46 to 90 and the full margin thereafter.

UBS Investment Bank, BMO Capital Markets, Deutsche Bank Securities Inc., Jefferies LLC, Goldman Sachs Bank USA, Truist and Antares are the lead arrangers on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Tuesday, the source added.

Allocations are expected on Wednesday.

Proceeds will be used to fund the acquisition of the retail wealth business of Securian Financial Group Inc.

Closing is expected in the third quarter, subject to regulatory approval.

Cetera is a San Diego-based network of financial professionals.

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