Alliant increases add-on term loan B-3 size, adds repricing

By Sara Rosenberg

New York, Oct. 20 – Alliant Holdings upsized its add-on term loan B-3 to $725 million from $475 million and added a repricing of its existing roughly $1.2 billion term loan B-3, according to a market source.

Pricing on the add-on term loan and repriced term loan is Libor plus 350 basis points, down from Libor plus 375 bps, the source said.

The add-on and repriced term loan are offered with an original issue discount of 99.875. Previously, the issue price on the add-on term loan had firmed at par, the tight end of the 99.75 to par talk, but it was changed with the addition of the repricing.

Also, 101 soft call protection for six months was added to the add-on and repriced term loans.

The term loan debt has a 0.5% Libor floor, in line with the existing Libor floor.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., Stone Point, BofA Securities Inc., Capital One, Goldman Sachs Bank USA, KKR Capital Markets, RBC Capital Markets, Truist, Fifth Third and Macquarie Capital (USA) Inc. are the leads on the deal. Morgan Stanley is the administrative agent.

Recommitments were scheduled to be due at 4 p.m. ET on Wednesday, the source added.

Proceeds from the add-on term loan, $225 million of senior secured notes, downsized from $475 million, and $450 million of senior unsecured notes will be used to fund acquisitions, an equity repurchase and general corporate purposes.

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

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