Alliant Insurance $1.54 billion credit facility expected July business

By Sara Rosenberg

New York, July 1 – Alliant Insurance Services Inc. is expected to hold a bank meeting in July for a proposed $1.54 billion credit facility, according to a market source.

The facility consists of a $200 million revolver and a $1.34 billion term loan, the source said.

Proceeds will be used to help fund the purchase of a significant equity interest in the company by Stone Point Capital LLC.

Other funds for the transaction will come from bonds that are backed by a $495 million opco bridge loan and a $175 million holdco bridge loan, the source continued.

Morgan Stanley Senior Funding Inc., UBS AG, Jefferies Finance LLC, Macquarie Capital (USA) Inc., Nomura and KKR Capital Markets are the leads on the debt, with Morgan Stanley left lead on the credit facility and UBS left lead on the bonds.

The bridge loans backing the bonds are currently in the process of being syndicated, the source added.

Under the transaction, funds managed by Stone Point will become Alliant Insurance’s largest institutional shareholders, and the company’s existing shareholders, who include management and producers as well as funds affiliated with KKR, will remain significant shareholders in the business.

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

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