Howden ups U.S. add-on term loan to $955 million, revises OID to 99

By Sara Rosenberg

New York, Sept. 21 – Howden Group Holdings Ltd. upsized its fungible U.S. covenant-lite add-on term loan B (B2/B) due Nov. 12, 2027 to $955 million from $415 million and tightened the original issue discount to 99 from 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.

The add-on and existing term loan are getting 101 soft call protection for six months.

Amortization on the U.S. term loan 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.

Commitments were scheduled to be due at 10 a.m. ET on Tuesday, 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, pay related fees and expenses, and, due to the U.S. loan upsizing, to refinance an existing term loan B priced at Libor plus 375 bps.

Closing is expected on Oct. 4.

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

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