Focus Financial flexes $755 million term loan to Libor plus 325 bps

By Sara Rosenberg

New York, May 18 – Focus Financial Partners reduced pricing on its $755 million seven-year covenant-light first-lien term loan (B+) to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was changed to 99.875 from 99.5, the source said.

The first-lien term loan still has a 0% Libor floor and 101 soft call protection for six months.

RBC Capital Markets and SunTrust Robinson Humphrey Inc. are the leads on the deal.

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

Proceeds will be used to help fund the acquisition of a majority stake in the company by an investor group led by Stone Point Capital and KKR from Centerbridge Partners, Summit Partners and Polaris Partners.

The transaction values Focus Financial at about $2 billion.

A $207 million eight-year covenant-light second-lien term loan (B-) for the transaction has been privately placed at pricing of Libor plus 750 bps with a 0% Libor floor and an original issue discount of 99.

The second-lien term loan includes call protection of 102 in year one and 101 in year two.

Focus Financial is a New York-based partnership of independent, fiduciary wealth-management firms.

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