Focus Financial gets $500 million term loan commitment for buyout

By Sara Rosenberg

New York, April 25 – Focus Financial Partners Inc. has received a commitment for a $500 million incremental covenant-lite first-lien secured term loan due July 1, 2028 to help fund its acquisition by Clayton, Dubilier & Rice LLC, according to a SC 13E3 filed with the Securities and Exchange Commission on Tuesday.

RBC Capital Markets, Truist Securities, Citizens Bank, MUFG, Fifth Third Bank, BMO Capital Markets and Capital One are the lead arrangers on the deal.

Based on the commitment letter, the incremental term loan is expected to have amortization of 1% per annum.

The maturity date of the incremental term loan matches the maturity date of the company’s existing term loan B-4.

Under the agreement, Focus is being purchased for $53 in cash per share. The transaction has an enterprise value of over $7 billion.

Other funds for the buyout will come from $3.2 billion of equity; however, up to $4.35 billion of equity can be used to fund the entire transaction if the debt financing is not obtained.

Closing is expected in the third quarter, subject to stockholder approval, regulatory approvals and other customary conditions.

Focus Financial is a New York-based partnership of independent, fiduciary wealth management firms operating in the registered investment advisor industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.