Osaic allocates $2.3 billion incremental, repriced two-part term loan

By Paul A. Harris

Portland, Ore., Feb. 23 – Osaic Holdings Inc. completed a $2,322,500,000 loan syndication on Friday, according to a market source.

The deal included an upsized $575 million fungible incremental first-lien term loan due August 2028 (B1/B/B+) and a repricing of the existing $1,747,500,000 first-lien term loan.

Interest is equal to SOFR plus 400 basis points, down from SOFR from 450 bps. There is no floor.

The paper was discounted to 99.50 for new lenders, on top of talk. The issue price for existing lenders was par, at the rich end of the 99.75 to par price talk.

There will be six months of soft call protection at 101.

The deal is expected to close in April.

UBS Investment Bank is the left lead arranger on the deal and the administrative agent.

Proceeds will be used with a $110 million equity contribution to fund the acquisition of Lincoln Financial Group’s wealth management business.

Size changes do not impact the equity contribution of the ratings.

Osaic, a portfolio company of Reverence Capital Partners, is a provider of wealth management solutions.

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