LPL Financial talks $700 million term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, Nov. 4 – LPL Financial Holdings Inc. is talking its $700 million incremental term loan (Ba3/BB-) due 2022 at Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The loan has 101 soft call protection for one year, the source said.

J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch, Citizens Bank, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA and Citigroup Global Markets Inc. are the lead banks on the deal that launched on Tuesday.

Proceeds will be used to fund a share repurchase, to repay revolver borrowings and for general corporate purposes, sources said. The company’s share repurchase authorization was recently increased to $500 million.

Also, with the incremental term loan, the company is amending its existing credit facility to provide for the new debt, extend the maturity of the roughly $1.06 billion term loan B to March 2021 from March 2019 and modify the restricted payment provisions to enable execution of the full amount of the increased share repurchase authorization.

The extended term loan B is talked at Libor plus 325 bps to 350 bps with a 0.75% Libor floor and 101 soft call protection for one year, the source added, versus current pricing of Libor plus 250 bps with a 0.75% Libor floor.

Existing lenders are being offered a 25 bps fee to approve the amendment.

Commitments and consents are due on Nov. 17.

LPL Financial is a Boston-based investment company.

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