Howden Group modifies $550 million add-on term loan B OID to 99

By Sara Rosenberg

New York, Nov. 9 – Howden Group Holdings Ltd. (Hyperion Refinance Sarl) revised the original issue discount on its fungible $550 million add-on covenant-lite term loan B due Nov. 12, 2027 (B2/B) to 99 from 98.79, according to a market source.

Also, ticking fees on the add-on term loan were changed to half the margin from days 31 to 60 and the full margin thereafter, from half the margin from days 31 to 60 and the full margin and Libor floor thereafter, the source said.

Pricing on the 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 add-on term loan is 1% per annum.

Morgan Stanley Senior Funding Inc., Barclays, RBC Capital Markets, Lloyds, ING and NatWest are the joint lead arrangers and bookrunners on the deal. Morgan Stanley is the administrative agent.

Recommitments were scheduled to be due at 2:30 p.m. ET on Tuesday, the source added.

Proceeds will be used with an $85 million add-on to the company’s privately placed second-lien term loan and a new privately placed £390 million HoldCo PIK facility to support the acquisition of Aston Lark from Goldman Sachs Asset Management and Bowmark Capital, and add cash to the locked account.

Pro forma for the transaction, the U.S. term loan B will total $2.761 billion.

Howden Group is a London-based insurance intermediary group. Aston Lark is commercial and private client broker in the United Kingdom.

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