HighTower launches $180 million of incremental term loans at 99.5 OID

By Sara Rosenberg

New York, Sept. 11 – HighTower Holdings LLC launched on Wednesday its $180 million of fungible incremental first-lien term loans with price talk of Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99.5, according to a market source.

The debt is split between a $135 million incremental first-lien term loan and a $45 million incremental delayed-draw first-lien term loan that are being sold as a strip.

The incremental and existing first-lien term loan debt are getting 101 soft call protection for six months, the source said.

Delayed-draw term loan availability is until Dec. 31, 2020, and there is a 1% ticking fee.

The facilities will be non-rated and governed by a total net leverage covenant.

Antares Capital is the lead on the deal.

Commitments are due on Sept. 25, the source added.

Proceeds will be used to fund planned acquisitions.

The company is also considering issuing up to $20 million of incremental second-lien debt as part of the acquisition financing.

Existing financing at the company includes a $50 million revolver, about $371 million of combined first-lien term loan and delayed-draw term loan facilities, and an $87.5 million second-lien term loan.

HighTower, a Thomas H. Lee Partners portfolio company, is a Chicago-based provider of a wealth management platform to financial advisers and their clients.

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