Sedgwick launches $2.34 billion term loan at Libor plus 325-350 bps

By Sara Rosenberg

New York, Oct. 29 – Sedgwick Claims Management Services Inc. launched on Monday its $2.34 billion seven-year covenant-light term loan B (B) with price talk of Libor plus 325 basis points to 350 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Amortization on the term loan is 1% per annum.

Bank of America Merrill Lynch, KKR Capital Markets, Morgan Stanley Senior Funding Inc. and SunTrust Robinson Humphrey Inc. are the lead arrangers on the deal.

Commitments are due at noon ET on Nov. 7, the source added.

Proceeds will be used to help fund the buyout of the company by the Carlyle Group from KKR in a transaction valued at about $6.7 billion.

Other funds for the buyout will come from equity.

Closing is expected later this year, subject to customary conditions, including regulatory approvals.

Funds managed by Stone Point Capital LLC and Caisse de dépôt et placement du Québec (CDPQ), together with Sedgwick management, will remain minority investors in the company.

Sedgwick is a Memphis, Tenn.-based provider of claims management solutions to corporations, public entities and insurance carriers.

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