Advisor Group lifts add-on term B to $475 million, revises OID

By Sara Rosenberg

New York, Jan. 31 – Advisor Group upsized its fungible add-on term loan B due August 2026 to $475 million from $200 million and tightened the original issue discount to 99.75 from 99.5, according to a market source.

Pricing on the add-on term loan is Libor plus 500 basis points with a 0% Libor floor, in line with existing term loan B pricing.

UBS Investment Bank is the left lead on the deal.

Commitments were scheduled to be due at 1 p.m. ET on Friday, the source added.

Proceeds will be used to help fund the acquisition of Ladenburg Thalmann Financial Services Inc. for $3.50 per share and, due to the upsizing, to refinance an existing $200 million term loan A. The total enterprise value of the transaction is about $1.3 billion, taking into account Ladenburg’s common stock, preferred stock and outstanding debt.

Other funds for the acquisition will come from $500 million of secured notes, downsized from $575 million with the term loan upsizing.

Closing is expected in the first half of this year, subject to customary conditions, including the approval of Ladenburg’s shareholders and regulatory approvals.

Advisor Group is a Phoenix-based network of independent financial advisers. Ladenburg is a Miami-based diversified financial services company.

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