StoneRiver to launch $720 million credit facility on Wednesday

By Sara Rosenberg

New York, May 14 - StoneRiver Group LP is scheduled to hold a bank meeting at 2 p.m. ET on Wednesday to launch a $720 million credit facility, according to a market source.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, KeyBanc Capital Markets LLC, Credit Suisse Securities (USA) LLC, U.S. Bank and MCS Capital Markets are the arrangers on the deal.

The facility consists of a $50 million five-year revolver, a $520 million 61/2-year first-lien term loan and a $150 million seven-year second-lien term loan, the source said.

Included in the first-lien loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two, the source continued.

Amortization on the first-lien term loan is 1% per annum.

The revolver has a maximum net leverage ratio, springing when outstanding borrowings are greater than 20%.

Proceeds will be used to refinance existing debt, for working capital, for capital expenditures and for general corporate purposes, and to fund a distribution to unit holders.

StoneRiver is an Oakland, Calif.-based provider of insurance outsourcing technology and professional services solutions to insurance companies, financial institutions and pharmacies.

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