USI expects $1 billion loan, more than $600 million bonds for buyout

By Sara Rosenberg

New York, Nov. 28 - USI Insurance Services is anticipated to get a $1 billion covenant-light institutional term loan and to issue over $600 million in bonds for Onex Corp.'s purchase of the company from GS Capital Partners VI Fund LP, according to a market source.

Bank of America Merrill Lynch, Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., RBC Capital Markets LLC and UBS Securities LLC are leading the financing, with Bank of America the left lead on the loan and Morgan Stanley the left lead on the bonds.

Closing on the roughly $2.3 billion transaction is expected by year-end, subject to customary conditions and regulatory approvals.

Employees of USI invested alongside GS Capital Partners in a take-private of the company in 2007. They will remain significant investors in the company going forward.

USI is a Briarcliff Manor, N.Y.-based insurance broker.

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