RCS Capital plans $725 million credit facility for Cetera purchase

By Sara Rosenberg

New York, Jan. 16 - RCS Capital Corp. has received a commitment for a $725 million senior secured credit facility to help fund its acquisition of Cetera Financial Group from Lightyear Capital, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Barclays and Bank of America Merrill Lynch are the lead banks on the deal.

The facility consists of a $25 million first-lien revolving credit facility that will be undrawn at closing, a $550 million first-lien term loan and a $150 million second-lien term loan.

Other funds for the $1.15 billion acquisition will come from $370 million in equity from Luxor Capital Group, $10 million of cash from RCS' partners and $104 million of RCS' cash on hand.

Closing is expected in the second quarter, subject to FINRA approval and other customary conditions.

RCS is a New York-based holding company that operates and grows businesses focused on the financial services industry. Cetera is an El Segundo, Calif.-based financial services holding company that provides independent broker-dealer services and investment advisory services.

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