RCS Capital to launch $725 million credit facility on Wednesday

By Sara Rosenberg

New York, March 3 - RCS Capital Corp. set a bank meeting for noon ET on Wednesday to launch its proposed $725 million senior secured credit facility, according to a market source.

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

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

Proceeds will be used to help fund the acquisition of Cetera Financial Group from Lightyear Capital for $1.15 billion and to refinance Cetera debt.

Other funds for the transaction will come from equity from Luxor Capital Group and 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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