Advisor Group downsizes eight-year secured notes to $500 million, shifts $75 million to bank loan

By Paul A. Harris

Portland, Ore., Jan. 31 – Advisor Group Inc. downsized its offering of eight-year senior secured notes (B/B+) to $500 million from $575 million and shifted the $75 million of proceeds to its concurrent term loan B on Friday, according to a market source.

The bonds were talked to yield 6½% to 6¾% on Thursday and are expected to price on Friday.

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.

With the shift of proceeds, the term loan increased to $475 million, upsized because of demand, the source said.

Proceeds, along with an equity contribution and the 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.

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

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