Alliant Insurance discloses talk on $1.54 billion facility with launch

By Sara Rosenberg

New York, July 15 – Alliant Insurance Services Inc. (Alliant Holdings I LP) revealed price talk on its $1.54 billion senior secured credit facility (B2/B) in connection with its bank meeting on Wednesday, according to a market source.

The $200 million five-year revolver is talked at Libor plus 375 basis points with leverage-based step-downs and no Libor floor, and the $1.34 billion seven-year covenant-light term loan B is talked at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, the source said.

Included in the term loan is 101 soft call protection for six months.

The revolver has a springing secured leverage ratio.

The facility has a 75% excess cash flow sweep with leverage-based step-downs.

Morgan Stanley Senior Funding Inc., UBS AG, Jefferies Finance LLC, KKR Capital Markets LLC, MCS Capital Markets LLC, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are the leads on the deal.

Commitments are due on July 29, the source added.

Proceeds will be used to help fund the purchase of a significant equity interest in the company by Stone Point Capital LLC.

Through the agreement, funds managed by Stone Point will become Alliant Insurance’s largest institutional shareholders, and the company’s existing shareholders, who include management and producers as well as funds affiliated with KKR, will remain significant shareholders in the business.

Other funds for the transaction will come from bonds that are backed by a $495 million opco bridge loan and a $175 million holdco bridge loan.

Closing is expected in early- to mid-August.

Alliant Insurance is a Newport Beach, Calif.-based specialty insurance brokerage firm.

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