Focus Financial launches $500 million term loan at SOFR plus 350 bps

By Sara Rosenberg

New York, May 4 – Focus Financial held a lender call at 1 p.m. ET on Thursday to launch a $500 million first-lien term loan B-6 due June 30, 2028 that is talked at SOFR plus 350 basis points with a 0.5% floor and an original issue discount of 98.5, according to a market source.

The term loan has 101 soft call protection for six months and is coterminous with the company’s existing term loan B-5, the source said.

Expected term loan ratings are B1/B+.

RBC Capital Markets, Stone Point Capital Markets, Truist, Citizens, MUFG, Fifth Third, BMO Capital Markets and Capital One are the lead arrangers on the deal.

Commitments are due at noon ET on May 11, the source added.

Proceeds will be used with equity to fund the buyout of the company by Clayton, Dubilier & Rice LLC for $53 in cash per share. The transaction has an enterprise value of over $7 billion.

Funds managed by Stone Point Capital LLC have agreed to retain a portion of their investment in Focus Financial and provide new equity financing as part of the proposed transaction.

Closing is expected in the third quarter, subject to stockholder approval, regulatory approvals and other customary conditions.

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

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