USI Holdings sets talk for $425 million two-part note offering

By Paul A. Harris

St. Louis, April 24 - USI Holdings Corp. set price talk for its $425 million two-tranche offering of notes on Tuesday, according to an informed source.

The Briarcliff Manor, N.Y., distributor of insurance and financial products and services talked its $225 million tranche of 7.5-year senior floating-rate notes (B3/CCC) at Libor plus 400 to 425 basis points.

Meanwhile USI talked its $200 million tranche of eight-year senior subordinated notes (Caa1/CCC) at 10% to 10¼%.

The books close at 5 p.m. ET on Wednesday. Pricing is expected on Thursday.

Goldman Sachs & Co. and JP Morgan are joint bookrunners for the Rule 144A for life and Regulation S notes.

Proceeds will be used to fund the leveraged buyout of the company by GS Capital Partners for $17.00 in cash per share in a transaction valued at about $1.4 billion, including repayment of about $365 million of USI debt.

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