Published on 1/29/2021 in the Prospect News High Yield Daily.
New Issue: Acrisure prices $700 million 4¼% eight-year secured notes at par
By Paul A. Harris
Portland, Ore., Jan. 29 – Acrisure, LLC and Acrisure Finance Inc. priced a $700 million issue of eight-year senior secured notes (B2/B) at par to yield 4¼% in a Friday drive-by, according to market sources.
The yield printed at the tight end of the 4¼% to 4½% yield talk. Initial guidance was in the mid-4% area.
J.P. Morgan Securities LLC was at the left of a syndicate of joint bookrunners that also included BofA Securities Inc., Blackstone, BMO Capital Markets Corp., Citizens Capital Markets Inc., ING Financial Markets LLC, Nomura Securities International Inc., RBC Capital Markets LLC, SMBC Nikko Securities America Inc., TD Securities (USA) LLC and Truist Securities Inc.
The Grand Rapids, Mich.-based insurance broker plans to use the proceeds plus proceeds from an additional $700 million of term loans to redeem all of its outstanding 8 1/8% senior secured notes due 2024, with any remaining proceeds to fund future acquisitions.
| Issuers: | Acrisure LLC and Acrisure Finance Inc.
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| Amount: | $700 million
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| Maturity: | Feb. 15, 2029
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| Securities: | Senior secured notes
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Blackstone, BMO Capital Markets Corp., Citizens Capital Markets Inc., ING Financial Markets LLC, Nomura Securities International Inc., RBC Capital Markets LLC, SMBC Nikko Securities America Inc., TD Securities (USA) LLC and Truist Securities Inc.
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| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
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| Spread: | 337 bps
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| Call protection: | Three years
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| Trade date: | Jan. 29
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| Settlement date: | Feb. 16
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| Ratings: | Moody’s: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 4¼% to 4½%
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| Marketing: | Drive-by
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