Conseco $475 million term loan to launch Tuesday

By Sara Rosenberg

New York, July 25 - Conseco Inc. is scheduled to hold a conference call at 3 p.m. ET on Tuesday to launch its proposed $475 million term loan, according to a market source.

Banc of America Securities LLC and J.P. Morgan Securities Inc. are lead arrangers and joint bookrunners on the deal.

The term loan, which is going out to existing lenders only, is talked at Libor plus 225 basis points with a step down to Libor plus 200 bps based on leverage, the source said.

Conseco plans to issue $300 million through a private offering of convertible debentures that will be used to pay down some of the existing $767 million of term loan debt, which carries an interest rate of Libor plus 350 bps.

The new term loan will be used to refinance the remaining term loan debt at a lower interest rate with more relaxed financial covenants and increased flexibility to enter into capital markets transactions.

Conseco is a Carmel, Ind.-based insurance company.

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