Cetera talks $750 million incremental loan at SOFR plus 450-475 bps, 97 OID

By Paul A. Harris

Portland, Ore., Feb. 24 – Aretec Group Inc., which does business as Cetera Financial Group, set price talk and timing on its $750 million seven-year non-fungible incremental first-lien term loan, according to a market source.

The talk specifies an interest rate of SOFR+CSA plus 450 basis points to 475 bps, a 0% floor and an original issue discount of 97.

Commitments are due at close of business on March 8.

There is soft call protection at 101 for six months beginning at the closing date.

There is a ticking fee at 50% of the margin from day 46 through day 90, stepping to 100% after day 91.

The loan has a springing maturity to the existing term loan and 90 days prior to the Aretec Escrow Issuer Inc. 7˝% senior notes due April 2029.

The El Segundo, Calif.-based financial services provider plans to use the proceeds to fund the acquisition of Securian Financial Group’s retail wealth business.

UBS, BMO, Deutsche Bank, Jefferies, Goldman Sachs, Truist and Antares Capital are the arrangers.

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