Hyperion sets U.S. and euro term loans at Libor/Euribor plus 350 bps

By Sara Rosenberg

New York, Dec. 15 – Hyperion Insurance Group Ltd. firmed pricing on its $925 million seven-year covenant-light term loan B and its €200 million seven-year covenant-light term loan B at Libor/Euribor plus 350 basis points, the low end of the Libor/Euribor plus 350 bps to 375 bps talk, according to a market source.

Also, the company removed from the term loans the 25 bps step-down at first-lien net leverage of 4.25 times or lower and set the 50 bps MFN for life on incremental debt, the source said.

As before, the U.S. term loan has a 1% Libor floor, the euro term loan has a 0% floor, and both term loans have an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s roughly $1.33 billion equivalent of senior secured credit facilities (B2/B) also include a £125 million five-year revolver.

Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities plc, RBC Capital Markets, HSBC Securities (USA) Inc., Lloyds Securities Inc., NatWest Markets and ING Capital LLC are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to refinance existing debt, to fund near-term acquisitions, to fund the Lockbox Account, for general corporate purposes and to pay related fees and expenses.

Hyperion is a London-based insurance intermediary group.

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