Risk Strategies wraps club syndication of $300 million credit facility

By Sara Rosenberg

New York, Nov. 30 – Risk Strategies Co. allocated on Monday its $300 million credit facility that was done via a club syndication, according to a market source.

Macquarie Capital, Antares Capital and Golub are the arrangers on the deal, and ING Capital is a documentation agent.

The facility consists of a $30 million revolver, a $205 million seven-year first-lien term loan, including a $25 million delayed-draw tranche, and a $65 million eight-year second-lien term loan, the source said.

Pricing on the first-lien term loan is Libor plus 525 basis points with a 1% Libor floor and an original issue discount of 99, and second-lien loan pricing is Libor plus 925 bps with a 1% Libor floor and a discount of 98, the source continued.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The first-lien delayed-draw term loan has a ticking fee of half the spread after 30 days and the full spread after 60 days.

Proceeds will be used to help fund the buyout of the company by Kelso & Co.

During syndication, the first-lien term loan was upsized by $10 million from $195 million and the second-lien term loan was upsized by $5 million from $60 million, with the extra funds available for a tuck-in acquisition, the source added.

First-lien leverage is 4.9 times and total leverage is 6.7 times.

Risk Strategies is a Boston-based insurance and benefits brokerage and risk management firm.

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