Focus raises term B to $1.76 billion, trims term A to $240 million

By Sara Rosenberg

New York, Nov. 17 – Focus Financial Partners LLC upsized its term loan B due June 30, 2028 to $1.76 billion from a revised amount of $1.75 billion and an initial size of $1.65 billion, according to a market source.

Also, the company’s delayed-draw term loan A was downsized to $240 million from a revised amount of $250 million and an initial size of $350 million, the source said.

In addition, the original issue discount on the term loan B was changed to 98.25 from revised talk of 98 and initial talk in the range of 97 to 98.

Pricing on the term loan B remained at SOFR plus 325 basis points with a 0.5% floor.

The term loan B still has 101 soft call protection for six months and no CSA.

RBC Capital Markets and Stone Point Capital Markets are co-lead arrangers on the deal (Ba3/BB-), and joint lead arrangers include BMO Capital Markets, Truist Securities, BofA Securities Inc., Capital One, Fifth Third, MUFG, Citizens and Huntington.

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

Proceeds will be used to refinance existing debt, including an existing first-lien term loan, and for general corporate purposes, which may include acquisitions.

The company is also extending its $650 million revolving credit facility from June 2024.

Focus is a New York-based partnership of independent, fiduciary wealth management firms operating in the registered investment advisor industry.

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