Advisor Group talks $575 million eight-year notes to yield 6½%-6¾%; pricing Friday

By Paul A. Harris

Portland, Ore., Jan. 30 – Advisor Group Inc. talked its $575 million offering of eight-year senior secured notes (B/B+) to yield 6½% to 6¾%, according to a press release and a syndicate source.

Books close at 9:30 a.m. ET on Friday, and the deal is set to price thereafter.

The notes become callable after three years at par plus half the coupon. A special call provision enables the issuer to redeem 10% of the notes annually at 103 during the non-call period.

BofA Securities Inc is the left bookrunner for the notes, which will be issued by AG Issuer, LLC. UBS Securities LLC, Barclays, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp. and Credit Suisse Securities (USA) LLC are the joint bookrunners.

Proceeds, along with an equity contribution and a $200 million term loan B facility, will be used in connection with the previously announced acquisition of Ladenburg Thalmann Financial Services Inc. Any remaining proceeds will be used for general corporate purposes.

The Rule 144A and Regulation S notes will be guaranteed on a senior secured basis by each of Advisor Group’s current and future wholly owned subsidiaries and will be secured on a first-priority basis by liens on all assets of Advisor Group and the guarantors.

Advisor Group is a network of independent financial advisers with headquarters in Phoenix.

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