National Financial gets $225 million senior secured credit facility

By Sara Rosenberg

New York, July 8 - National Financial Partners Corp. closed on a new $225 million four-year senior secured credit facility on Thursday, according to an 8-K filed with the Securities and Exchange Commission.

Bank of America and Wells Fargo acted as the joint lead arrangers on the deal, with Bank of America the bookrunner and administrative agent.

The facility consists of a $100 million revolver and a $125 million term loan.

Pricing on the facility can range from Libor plus 250 basis points to 325 bps based on leverage. Initial pricing is Libor plus 300 bps.

The revolver has a commitment fee that can range from 35 bps to 50 bps based on leverage, with the initial fee set at 45 bps.

Amortization on the term loan is 2.5% quarterly principal payments beginning on Sept. 30, with the remaining balance of due at maturity.

Financial covenants include a leverage ratio of no greater than 2.5:1.0, an interest coverage ratio of no less than 4.0 to 1.0 and a fixed-charge coverage ratio of no less than 2.0 to 1.0.

Proceeds were used to refinance an existing credit facility that was due in August 2011 and to help fund a tender offer for $229.9 million of the company's 0.75% convertible senior notes due 2012.

National Financial is a New York-based financial services distribution company.

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