National Financial flexes $753 million term loan to Libor plus 425 bps

By Sara Rosenberg

New York, June 19 - National Financial Partners Corp. upsized its term loan to $753 million from $716 million and increased pricing to Libor plus 425 basis points from talk of Libor plus 350 bps to 375 bps, according to a market source.

In addition, the 101 soft call protection was extended to one year from six months, the source said.

The loan still has a 1% Libor floor and an original issue discount of 99.

The company's now $888 million senior secured credit facility (B1/B+), up from $851 million, also includes a $135 million revolver.

Commitments were due on Wednesday.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., UBS Securities LLC, Credit Suisse Securities (USA) LLC, MCS Capital and RBC Capital Markets are the lead banks on the debt.

Proceeds will be used to help fund the buyout of the company by Madison Dearborn Partners LLC for $25.35 in cash per share. The transaction is valued at about $1.3 billion, including the full value of the company's convertible debt.

Other funds for the transaction will come from $300 million of senior unsecured notes, downsized from $337 million as a result of the term loan upsizing, and up to $385.4 million of equity.

Closing is expected in the third quarter, subject to stockholder approval and other customary conditions.

National Financial Partners is a New York-based provider of benefits, insurance and wealth management services.

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