Hyperion talks $625 million term B at Libor plus 375 bps to 400 bps

By Sara Rosenberg

New York, Oct. 15 – Hyperion Insurance Group Ltd. launched on Thursday its $625 million seven-year incremental senior secured covenant-lite first-lien term loan B (B2/B) with price talk of Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc., RBC Capital Markets, Barclays, HSBC Securities (USA) Inc., Lloyds and Julius Baer are the joint lead arrangers and bookrunners on the deal.

Commitments are due at noon ET on Oct. 22, the source added.

Proceeds will be used to fund the company’s acquisition of A-Plan Group, a personal and commercial lines insurance broker, to repay borrowings under its revolving credit facility, to fund its locked box account and to pay related fees and expenses.

HgCapital will make a £500 million equity investment in Hyperion, adding Hg as long-term investors in Hyperion alongside General Atlantic and Caisse de depot et placement du Quebec.

Hyperion is a London-based insurance intermediary group.

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