Howden Group launches U.S. and euro term loans to investors

By Sara Rosenberg

New York, Jan. 29 – Howden Group Holdings Ltd. held a lender call at 11:15 a.m. ET on Monday to launch a $3.435 billion seven-year term loan B, a $1.083 billion term loan B due 2030 and a €660 million seven-year term loan B, according to a market source.

Talk on the U.S. seven-year term loan is SOFR plus 325 basis points to 350 bps with a 0.5% floor and an original issue discount of 99.5, talk on the U.S. term loan due 2030 is SOFR plus 325 bps to 350 bps with a 0.5% floor and a par issue price, and talk on the euro term loan is Euribor plus 400 bps with a 0% floor and an original issue discount of 99.5, the source said.

The term loans (B2) have 101 soft call protection for six months.

The company also plans on getting a £630 million revolving credit facility.

JPMorgan Chase Bank, Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, Goldman Sachs, RBC Capital Markets, Citigroup Global Markets Inc., HSBC Securities, ING, Lloyds, NatWest and Santander are the bookrunners on the deal. Morgan Stanley is the administrative agent.

Commitments for the U.S. loans are due at 5 p.m. ET on Thursday, and commitments for the euro loan are due at noon ET on Thursday, the source added.

Proceeds will be used with $750 million of senior secured notes and $500 million of senior notes to repay existing U.S. and euro term loans, to reprice an existing U.S. term loan due 2030 down from SOFR plus 400 bps, to refinance an existing second-lien term loan and for general corporate purposes.

Specifically, the company plans to repay its $620 million SOFR plus 525 bps term loan due November 2027, its $2.708 billion Libor plus 325 bps term loan due November 2027, $253 million equivalent euro Euribor plus 450 bps term loan due November 2027, $688 million equivalent euro Euribor plus 350 bps term loan due November 2027 and $455 million second-lien term loan; to pay $67 million in estimated fees, expenses and original issue discounts; and to add $591 million to the balance sheet.

Howden Group is a London-based insurance intermediary group.

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