Focus Financial shifts funds between funded and delayed-draw loans

By Sara Rosenberg

New York, June 24 – Focus Financial Partners Inc. upsized its funded seven-year first-lien term loan to $650 million from $400 million and downsized its delayed-draw first-lien term loan to $150 million from $400 million, according to a market source.

In addition, the original issue discount on the term loan debt was revised to 99.25 from 99.5, and the delayed-draw ticking fee was changed to half the spread from days 31 to 60 and the full spread thereafter from half the spread from days 46 to 90 and the full spread thereafter, the source said.

Pricing on the term loan debt (BB-) remained at Libor plus 250 basis points with a 0.5% Libor floor.

Included in the term loan is 101 soft call protection for six months.

The funded and delayed-draw term loans are being sold as a strip.

RBC Capital Markets, Stone Point Capital Markets, KKR Capital Markets, BMO Capital Markets, Truist, Capital One, Fifth Third, Goldman Sachs Bank USA, MUFG, Regions, BofA Securities Inc. and Citizens Bank are the lead arrangers on the deal.

Commitments continued to be due at noon ET on Thursday, the source added.

Proceeds will be used to fund acquisitions.

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

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