Focus Financial lifts add-on term loan to $500 million, firms OID

By Sara Rosenberg

New York, Jan. 20 – Focus Financial Partners Inc. upsized its fungible add-on first-lien term loan to $500 million from $375 million and set the original issue discount at 99.875, the midpoint of the 99.75 to par talk, according to a market source.

Pricing on the add-on term loan is Libor plus 200 basis points with a 0% Libor floor.

The add-on term loan is getting 101 soft call protection for six months.

RBC Capital Markets and Stone Point Capital Markets are the lead arrangers on the deal.

Commitments remained due at 3 p.m. ET on Wednesday, the source added.

Proceeds will be used to repay outstanding borrowings under the company’s revolving credit facility and, due to the upsizing, to add cash to the balance sheet.

Closing is expected this month.

As of Dec. 31, the company had $1.13 billion outstanding under its term loan and $380 million outstanding under its revolver.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms.

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