Alliant Holdings trims term B-3 to $325 million, revises OID to 99.25

By Sara Rosenberg

New York, Oct. 8 – Alliant Holdings Intermediate LLC downsized its seven-year covenant-lite term loan B-3 to $325 million from $425 million and tightened the original issue discount to 99.25 from 99, according to a market source.

Pricing on the term loan B-3 remained at Libor plus 375 basis points with a 0.5% Libor floor.

The term loan B-3 has 101 soft call protection for one year and amortization of 1% per annum.

The company’s now $725 million of senior secured credit facilities, down from $825 million, also include a $400 million five-year revolver.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities Inc., Truist, BofA Securities Inc., Capital One, Goldman Sachs Bank USA, RBC Capital Markets, Fifth Third, KKR Capital Markets and Macquarie Capital (USA) Inc. are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used with a $525 million senior secured notes offering, upsized from $425 million, a $350 million add-on senior unsecured notes offering and cash on hand to make a special distribution to the company’s parent, Alliant Holdings LP, which will use the funds to repurchase certain equity interests, to complete acquisitions under letters of intent, and, if any proceeds remain, for general corporate purposes.

In conjunction with the term loan financing, the company is seeking an amendment to its existing $2.039 billion covenant-lite term loan B due May 10, 2025 and $523 million covenant-lite term loan B-2 due May 10, 2025 to permit the recapitalization.

The amended term loan B will be priced at Libor plus 325 bps with no step-down and a 0% Libor floor, and the amended term loan B-2 will remain priced at Libor plus 325 bps with a 0% Libor floor.

Both the term loan B and the term loan B-2 will get 101 soft call protection for one year.

Lenders are being offered a 25 bps amendment fee.

Commitments and consents were scheduled to be due at noon ET on Thursday, the source added.

Alliant is a Newport Beach, Calif.-based specialty insurance brokerage firm.

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