Arrowhead General Insurance sets price talk on $172 million facility

By Sara Rosenberg

New York, Feb. 10 - Arrowhead General Insurance Agency Inc. revealed price talk on its $172 million senior secured credit facility at the deal launch with a bank meeting on Thursday in New York, according to a market source.

The $15 million five-year revolver (B3) and $115 million six-year first-lien term loan (B3) are both being talked at Libor plus 575 basis points, while the $42 million seven-year second-lien term loan (Caa1) is being talked at Libor plus 950 bps, the source said.

All tranches have a 1.75% Libor floor.

The revolver also includes a 75 bps unused fee.

The first-lien term loan is being offered at an original issue discount of 98 and the second-lien term loan is being offered at a discount of 97, the source continued.

Call protection on the second-lien term loan is 103 in year one, 102 in year two and 101 in year three.

Covenants include total leverage and interest coverage.

RBC Capital Markets and Macquarie Capital are the joint lead arrangers and bookrunners on the deal, with RBC as the left lead.

Proceeds will be used to refinance an existing first-and second-lien credit facility.

Arrowhead is a San Diego-based national insurance program manager owned by Spectrum Equity Investors and JMI Partners.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.