Howden Group talks U.S. and euro add-on term loans at 98.56 OID

By Sara Rosenberg

New York, Sept. 9 – Howden Group Holdings Ltd. launched on Thursday its fungible $415 million covenant-lite add-on term loan B (B2/B) due Nov. 12, 2027 and fungible €350 million covenant-lite add-on term loan B (B2/B) due Nov. 12, 2027 with original issue discount talk of 98.56, according to a market source.

Pricing on the U.S. add-on term loan is Libor plus 325 basis points with a 0.75% Libor floor, and pricing on the euro add-on term loan is Euribor plus 350 bps with a 0% floor.

The add-on and existing term loans are getting 101 soft call protection for six months, the source said.

Amortization on the term loans is 1% per annum.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, Barclays, HSBC Securities, NatWest, ING and Lloyds are joint lead arrangers and bookrunners on the deal, with Morgan Stanley the left lead on the U.S. loan and Morgan Stanley and JPMorgan the joint physical leads on the euro loan.

Commitments are due at 10 a.m. ET on Sept. 21, the source added.

Proceeds will be used with a $370 million privately placed second-lien term loan to fund the acquisition of Align Financial Holdings, add cash to the locked account, pay down revolving credit facility borrowings and pay related fees and expenses.

Howden Group is a London-based insurance intermediary group. Align is a specialist general agency and underwriting management group.

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