Sedgwick reveals talk on first-, second-lien term loans with launch

By Sara Rosenberg

New York, Jan. 30 - Sedgwick Inc. released price talk on its $1.02 billion seven-year first-lien term loan and $510 million eight-year second-lien term loan with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 991/2, and the second-lien term loan is talked at Libor plus 675 bps with a 1% Libor floor and a discount of 99, the source said.

The first-lien term loan has amortization of 1% per annum.

The company's $1,655,000,000 credit facility also provides for a $125 million five-year revolver.

Commitments are due on Feb. 13, the source added.

UBS Securities LLC, Deutsche Bank Securities Inc., KKR Capital Markets, Mizuho and Morgan Stanley Senior Funding Inc. are the bookrunners on the deal, with UBS the left lead on the first-lien loan and Deutsche Bank the left lead on the second-lien loan.

Proceeds will be used to help fund the acquisition of Sedgwick by KKR and management for about $2.4 billion from Hellman & Friedman LLC and Stone Point Capital LLC.

Other funds for the transaction will come from equity.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Sedgwick is a Memphis, Tenn.-based provider of technology-enabled claims and productivity management solutions.

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