By Paul A. Harris
Portland, Ore., Jan. 31 – Advisor Group Inc. priced a downsized $500 million issue of eight-year senior secured notes (B1/B/B+) at par to yield 6¼% on Friday, according to market sources.
The issue size decreased $575 million, with $75 million of cash moved to the term loan B.
The yield printed 25 basis points tighter than the 6½% to 6¾% yield talk.
With the shift of proceeds, the term loan increased to $475 million, upsized because of demand, the source said.
Proceeds, along with an equity contribution and the term loan B facility, will be used in connection with the previously announced acquisition of Ladenburg Thalmann Financial Services Inc. Any remaining proceeds will be used for general corporate purposes.
Advisor Group is a network of independent financial advisers with headquarters in Phoenix.
| Issuer: | AG Issuer, LLC to be merged with and into Advisor Group Holdings, Inc.
|
| Amount: | $500 million, decreased from $575 million
|
| Maturity: | March 1, 2028
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| Securities: | Senior secured notes
|
| Bookrunners: | BofA Securities Inc., UBS Securities LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp. and Credit Suisse Securities (USA) LLC
|
| Coupon: | 6¼%
|
| Price: | Par
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| Yield: | 6¼%
|
| Spread: | 480 bps
|
| Call protection: | Three years
|
| Trade date: | Jan. 31
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| Settlement date: | Feb. 13
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| Ratings: | Moody's: B1
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| S&P: B
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| Fitch: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
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