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Wells Fargo Asset flexes $1.24 billion term B to Libor plus 325 bps
By Sara Rosenberg
New York, April 22 – Wells Fargo Asset Management (Zebra Buyer LLC) reduced pricing on its $1.24 billion seven-year covenant-lite first-lien term loan B to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.
Also, a 25 bps step-down at 3.75x first-lien net leverage and a 25 bps step-down upon an initial public offering were added to the term loan, and the original issue discount was tightened to 99.5 from 99, the source said.
The term loan still has a 0.5% Libor floor, 101 soft call protection for six months, a ticking fee of half the margin from days 31 to 60 and the full margin thereafter, and amortization of 1% per annum.
The company’s $1.41 billion of senior secured credit facilities (Ba2/BB-/BB) also include a $170 million five-year revolver.
Morgan Stanley Senior Funding Inc., BofA Securities Inc., UBS Investment Bank, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets are the joint lead arrangers and bookrunners on the deal. Morgan Stanley is the administrative agent.
Recommitments were scheduled to be due at 11 a.m. ET on Thursday, the source added.
Proceeds will be used to help fund the $2.1 billion buyout of the company by GTCR LLC and Reverence Capital Partners LP from Wells Fargo & Co., and pay fees, expenses and original issue discount related to the transaction.
Closing is expected in the second half of this year following the receipt of regulatory approvals and contractual consents.
Wells Fargo Asset is an asset management firm.
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