Alliant Insurance Services increases term loan B size to $705 million

By Sara Rosenberg

New York, Dec. 6 - Alliant Insurance Services Inc. (Alliant Holdings I) upsized its seven-year term loan B to $705 million from $680 million, according to a market source.

Also, pricing on the B loan was reduced to Libor plus 375 basis points from talk of Libor plus 400 bps to 425 bps, and the original issue discount was revised to 99½ from 99, the source said.

The 1.25% Libor floor and 101 soft call protection for one year were left intact.

With the change in size, the MFN sunset term was removed from the loan, the source added.

The company's now $805 million credit facility (B1/B-), up from $780 million, also includes a $100 million five-year revolver.

Commitments were due on Thursday.

J.P. Morgan Securities LLC, UBS Securities LLC, Bank of America Merrill Lynch, Morgan Stanley Funding Inc. and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of the company by Kohlberg Kravis Roberts & Co. LP from Blackstone.

Other funds for the transaction will come from $450 million of notes that were downsized from $475 million as a result of the term loan B upsizing, the source added.

The management team and employees of Alliant own about 45% of the company and will roll over a substantial portion of their investment in the company with the buyout.

Closing is expected this quarter, subject to certain conditions.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

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