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Russell Investments revises discount on $650 million term loan B to 94
By Sara Rosenberg
New York, May 10 – Russell Investments widened the original issue discount on its $650 million seven-year covenant-light term loan B to 94 from revised talk of 97 and initial talk of 98.5, according to a market source.
Pricing on the term loan B is still Libor plus 575 basis points with a 1% Libor floor, and there is still 101 soft call protection for one year.
Previously in syndication, the spread on the loan was increased from talk of Libor plus 450 bps to 475 bps and the call protection was extended from six months.
In addition, when the earlier changes occurred, the 18-month MFN sunset was eliminated, the incremental free and clear was reduced to $100 million from $150 million and the incremental incurrence ratios were revised to 3.75 times first-lien net leverage and 5.25 times total net leverage, which is 0.25 times less than initially proposed.
Furthermore, at the time of the earlier revisions, the excess cash flow sweep was modified to 75% at more than 3.5 times first-lien net leverage, 50% at more than 3 times first-lien net leverage and 25% at less than 2.5 times first-lien net leverage, from opening at 50%.
The company’s $700 million credit facility (Ba2/BB/BB) also includes a $50 million five-year revolver.
Barclays, Macquarie Capital (USA) Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.
Proceeds will be used to help fund the buyout of the company by TA Associates and Reverence Capital Partners from London Stock Exchange Group plc in a transaction valued at $1.15 billion, subject to customary closing adjustments.
Closing is expected in the first half of this year, conditioned on regulatory and other required approvals.
Net leverage is 3.9 times.
Russell Investments is a Seattle-based asset manager.
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