Sedgwick launches first-lien at Libor plus 375-400 bps, second-lien at Libor plus 750 bps

By Sara Rosenberg

New York, May 11 - Sedgwick Claims Management Services Inc. launched on Tuesday its $460 million of first-lien debt with price talk of Libor plus 375 basis points to 400 bps, and its $200 million second-lien term loan with talk of Libor plus 750 bps, according to a market source.

The first-lien debt is comprised of a $60 million five-year revolver and a $400 million six-year term loan.

The revolver, the first-lien term loan and the seven-year second-lien term loan all include a 1.5% Libor floor.

Lenders are being offered the first-lien term loan at an original issue discount of 99 and the second-lien term loan at an original issue discount of 981/2, the source said.

The second-lien term loan is non-callable for two years, then at 103 in year three, 102 in year four and 101 in year five.

Bank of America and Barclays Capital are the lead banks on the $660 million credit facility.

Proceeds will be used to help fund the buyout of the company by Stone Point Capital LLC and Hellman & Friedman LLC for $1.1 billion, including repayment of debt, from its current group of investors, which includes Fidelity National Financial Inc., Thomas H. Lee Partners LP, Evercore Capital Partners and other minority shareholders.

The transaction is expected to close during the second quarter, subject to usual and customary conditions and the receipt of regulatory approvals.

Sedgwick is a Memphis, Tenn.-based provider of claims and productivity management services to corporate and institutional clients.

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