Focus Financial adds ticking fee, removes one step-down from term B-6

By Sara Rosenberg

New York, May 9 – Focus Financial added a ticking fee to its $500 million first-lien term loan B-6 due June 30, 2028 (B1/B+) and removed one of two leverage-based pricing step-downs, according to a market source.

The ticking fee is half the spread from days 46 to 90 and the full spread thereafter, the source said.

The 25 bps pricing step-down that was left in place occurs at 4.25x first-lien net leverage.

As before, the term loan is talked at SOFR plus 350 basis points with a 0.5% floor, an original issue discount of 98.5 and 101 soft call protection for six months.

The term loan B-6 is coterminous with the company’s existing term loan B-5.

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

Commitments continued to be due at 5 p.m. ET on Tuesday, the source added.

Proceeds will be used with equity to fund the buyout of the company by Clayton, Dubilier & Rice LLC for $53 in cash per share. The transaction has an enterprise value of over $7 billion.

Funds managed by Stone Point Capital LLC have agreed to retain a portion of their investment in Focus Financial and provide new equity financing as part of the proposed transaction.

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 adviser industry.

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