Alliant Insurance flexes $1.34 billion term B to Libor plus 350 bps

By Sara Rosenberg

New York, July 27 – Alliant Insurance Services Inc. (Alliant Holdings I LP) reduced pricing on its $1.34 billion seven-year covenant-light term loan B to Libor plus 350 basis points from Libor plus 400 bps, according to a market source.

Additionally, the original issue discount on the term loan B was revised to 99.75 from talk of 99 to 99.5, the 101 soft call protection was extended to one year from six months, the MFN was set for life and the asset sale prepayment step-down was removed, the source said.

The term B still has a 1% Libor floor.

The company’s $1.54 billion senior secured credit facility (B2/B) also includes a $200 million five-year revolver.

Recommitments were due at 2 p.m. ET on Monday, the source added.

Morgan Stanley Senior Funding Inc., UBS AG, Jefferies Finance LLC, KKR Capital Markets LLC, MCS Capital Markets LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are the leads on the deal.

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

Through the agreement, 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.

Other funds for the transaction will come from $535 million of senior unsecured notes.

Closing is expected in early to mid-August.

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

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