Hyperion launches $725 million term loan B at Libor plus 450-475 bps

By Sara Rosenberg

New York, March 11 – Hyperion Insurance Group Ltd. launched on Wednesday its $725 million seven-year term loan B with price talk of Libor plus 450 basis points to 475 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 a secured net leverage covenant.

The company’s proposed senior secured credit facility (B1) also includes an £85 million five-year revolver that is talked at Libor plus 425 bps with leverage-based step-downs, no Libor floor and an original issue discount of 99, the source said.

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

Commitments are due on March 25, the source added.

Proceeds will be used with equity to fund the acquisition of RK Harrison Holdings Ltd. and repay existing Hyperion debt.

The combined group will be 70% owned by its employees, with Hyperion’s external shareholder, General Atlantic, remaining in place with its share of 30%.

Closing is expected in April.

The newly merged business will have projected annual revenues approaching £400 million and EBITDA of £100 million.

Hyperion is a London-based insurance intermediary group. RK is a London-based insurance and reinsurance broker.

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