Cetera talks $700 million secured notes due August 2030 in 10% area; books close Thursday

By Paul A. Harris

Portland, Ore., Oct. 26 – Cetera Financial Group Inc. talked a $700 million offering of Aretec Escrow Issuer 2 Inc. senior secured notes due August 2030 (B2/B) to yield in the 10% area, according to market sources.

Official talk comes toward the wide end of initial guidance in the high-9% to 10% area.

Books close at noon ET on Thursday.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

Goldman Sachs & Co. LLC is the left bookrunner. UBS Securities LLC, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Truist Securities Inc., Jefferies LLC, Morgan Stanley & Co. LLC and Barclays are the joint bookrunners.

The San Diego-based financial services provider plans to use the proceeds plus a $1.69 billion incremental term loan to fund its acquisition of Avantax Inc.

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