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Hyperion cuts U.S. term B to $540 million, adds €75 million tranche
By Sara Rosenberg
New York, Oct. 22 – Hyperion Insurance Group Ltd. downsized its U.S. seven-year incremental senior secured covenant-lite first-lien term loan B (B2/B) to $540 million from $625 million and added a fungible €75 million add-on first-lien term loan B due Dec. 20, 2024 to the capital structure, according to a market source.
In addition, pricing on the U.S. term loan firmed at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, the source said.
The U.S. term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.
Of the total U.S. term loan amount, $245 million will be funded and $295 million will fund into escrow in January at full margin plus the Libor floor.
Ticking fees on the to-be-funded portion are half the margin from days 31 to 60 and the full margin thereafter.
Pricing on the add-on euro term loan is Euribor plus 350 bps with a 0% floor and an original issue discount of 99.026.
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 were scheduled to be due at noon ET on Thursday.
Proceeds will be used to fund the company’s acquisition of the personal and commercial lines insurance broker A-Plan Group, to repay borrowings under the company’s 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 a long-term investor 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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