Kestra launches $410 million term loan at Libor plus 425-450 bps

By Sara Rosenberg

New York, April 11 – Kestra Financial Inc. launched on Thursday its $410 million seven-year term loan with price talk of Libor plus 425 basis points to 450 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $485 million of credit facilities (B3/B+) also include a $75 million five-year revolver.

UBS Investment Bank, Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA and SunTrust Robinson Humphrey Inc. are the leads on the deal.

Commitments are due on April 25, the source added.

Proceeds will be used to help fund the buyout of the company by Warburg Pincus LLC. Stone Point Capital LLC, Kestra Financial’s current majority owner, will maintain a minority stake in the company.

Closing is expected in the second quarter or early in the third quarter, subject to customary regulatory approvals.

Kestra Financial is an Austin, Texas-based provider of an advisor platform to financial professionals.

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