Hyperion updates pricing on euro add-on loan, shelves repricings

By Sara Rosenberg

New York, June 1 – Hyperion Insurance Group Ltd. firmed pricing on its €50 million add-on covenant-light term loan B (B) due Dec. 20, 2024 at Euribor plus 350 basis points, the high end of the Euribor plus 325 bps to 350 bps talk, according to a market source.

Also, the issue price on the add-on term loan was changed to par from 99.75, the source said.

The add-on term loan still has a 0% floor.

Since pricing on the add-on term loan finalized at Euribor plus 350 bps, there will be no repricing of the existing €200 million covenant-light term loan B (B) due Dec. 20, 2024 being that its current rate is Euribor plus 350 bps with a 0% floor.

Additionally, the company scrapped plans to reprice its existing $923 million covenant-light term loan B (B) due Dec. 20, 2024.

The U.S. loan repricing was talked at Libor plus 325 bps with a 0% Libor floor, a par issue price and 101 soft call protection for six months, versus current pricing of Libor plus 350 bps with a 1% Libor floor.

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

Proceeds from the add-on loan will be used to fund the locked account and pay related fees and expenses.

Hyperion is a London-based insurance intermediary group.

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