By Paul A. Harris
Portland, Ore., Aug. 4 – Advisor Group Holdings, Inc. priced an upsized $500 million issue of five-year senior secured notes (B2/B-/B) at par to yield 8 5/8% in a Thursday drive-by, according to market sources.
The issue size increased from $475 million.
The yield printed through the 8¾% to 9% yield talk. Initial guidance was in the low-to-mid 9% area.
The deal was playing to around $1 billion of orders at midday Thursday, according to a sellside source, who added that it came into the market on the back of about $500 million of reverse inquiry.
The new 8 5/8% secured notes due 2027 traded at 101¾ bid, 102½ offered heading into the Thursday close, the sellsider said.
The Phoenix-based wealth management services provider plans to use the proceeds to finance its acquisition of American Portfolios Holdings, Inc., which was announced on June 16.
The issuing entity will be AG TTMT Escrow Issuer LLC, which will merge with Advisor Group Holdings upon completion of the American Portfolios Holdings acquisition.
Any proceeds remaining from Advisor Group's Thursday sale of senior secured notes will be used for general corporate purposes, which may include financing for the acquisition of Infinex Financial Holdings, Inc., which was announced on May 13.
| Issuer: | AG TTMT Escrow Issuer LLC
|
| Amount: | $500 million, increased from $475 million
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| Issue: | Senior secured notes
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| Tenor: | Five years
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| Bookrunners: | BofA Securities Inc., U.S. Bancorp Investments Inc., BMO Capital Markets Corp. and Truist Securities Inc.
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| Coupon: | 8 5/8%
|
| Price: | Par
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| Yield: | 8 5/8%
|
| Call protection: | Two years
|
| Trade date: | Aug. 4
|
| Ratings: | Moody's: B2
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| S&P: B-
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 8¾% to 9%
|
| Marketing: | Drive-by
|
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