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LPL Financial finalizes spreads on incremental and extended term loans
By Sara Rosenberg
New York, Nov. 19 – LPL Financial Holdings Inc. firmed pricing on its $700 million incremental term loan (Ba3/BB-) due 2022 at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, and on its term loan B extension at Libor plus 350 bps, the wide end of the Libor plus 325 bps to 350 bps talk, according to a market source.
As before, the incremental term loan and the extended loan have a 0.75% Libor floor and 101 soft call protection for one year.
The incremental term loan still has an original issue discount of 99.
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.
Proceeds from the incremental term loan will be used to fund a share repurchase, to repay revolver borrowings and for general corporate purposes. The company’s share repurchase authorization was recently increased to $500 million.
The term loan B extension is pushing out the maturity on the existing roughly $1.06 billion loan to March 2021 from March 2019 and is increasing pricing from Libor plus 250 bps with a 0.75% Libor floor.
In addition, the company is amending its existing credit facility to provide for the new debt and modify the restricted payment provisions to enable execution of the full amount of the increased share repurchase authorization.
Existing lenders were offered a 25 bps fee to approve the amendment.
LPL Financial is a Boston-based investment company.
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