Acrisure’s $725 million eight-year senior notes talked at 7%-7¼%; pricing expected Friday

By Paul Deckelman

New York, Nov. 3 – Acrisure LLC and Acrisure Finance, Inc. are expected to price a $725 million offering of senior notes due 2025 (Caa2/CCC+) to yield 7% to 7¼%, high-yield syndicate sources said Friday.

Pricing on the Rule 144A and Regulation S deal is expected to take place during Friday’s session.

The issue is being brought to market via J.P. Morgan Securities LLC. The roadshow marketing the deal to prospective investors began on Monday.

The notes will come with three years of call protection.

Caledonia, Mich.-based insurance brokerage Arcrisure – the 14th largest brokerage based in the United States in terms of revenues in 2016, according to the company announcement – plans to use the proceeds from the bond deal to replace all of its existing second-lien notes, to pay related fees and expenses and to fund acquisitions.

When it announced the upcoming bond deal, the company also said that in connection with the notes issue that it plans to reprice and increase the size of its existing first-lien term loan facility, “and make certain other modifications.”

On Oct. 26, the company launched a $325 million add-on first-lien term loan and a repricing of its existing $1.846 billion first-lien loan, according to a market source, with JPMorgan as the lead bank on that deal.

The market source said that price talk on the $2.17 billion term debt was Libor plus 450 basis points to 475 bps with a 1% Libor floor, down from the interest rate on the existing loan – 500 bps over Libor, also with a 1% floor.

The source further said that the add-on term loan is talked with an original issue discount of 99.75, and all of the term loan debt is getting 101 soft call protection for six months.

Sara Rosenberg contributed to this report

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