Focus Financial increases first-lien term loan size to $795 million

By Sara Rosenberg

New York, May 19 – Focus Financial Partners upsized its seven-year covenant-light first-lien term loan to $795 million from $755 million, according to a market source.

Pricing on the first-lien term loan is Libor plus 325 basis points with a 0% Libor floor and an original issue discount of 99.875.

The first-lien term loan has 101 soft call protection for six months.

Earlier in syndication, pricing on the first-lien term loan was reduced from talk of Libor plus 350 bps to 375 bps and the discount was tightened from 99.5.

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

Commitments were scheduled to be due at 5 p.m. ET on Friday, with allocations expected on Monday, the source continued.

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.

As a result of the first-lien term loan upsizing, the total equity is being ratably reduced, the source added.

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

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