Advisor Group lifts term loan to $650 million, updates pricing

By Sara Rosenberg

New York, Aug. 9 – Advisor Group Inc. upsized its seven-year first-lien term loan to $650 million from $600 million and firmed pricing at Libor plus 375 basis points, the low end of the Libor plus 375 bps to 400 bps talk, according to a market source.

In addition, the original issue discount on the term loan was revised to 99.75 from 99.5, the source said.

Also, the MFN was changed to 50 bps for life with no carve-outs except if the incremental term loan maturity is less than two years from the existing term loan, from 50 bps MFN for 12 months with carve-outs.

Furthermore, the incremental was modified to remove the inside maturity carve-out and the look-forward under EBITDA was shortened to 18 months from 24 months, the source continued.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Barclays is the left lead arranger on the deal.

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing debt, fund the acquisition of Signator Investors Inc., a broker-dealer and investment adviser, fund a dividend to existing shareholders, and pay transaction fees and expenses.

Lightyear Capital and PSP Investments are the sponsors.

Advisor Group is a Phoenix-based network of independent financial advisory firms.

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