Howden trims U.S. loan to $2.93 billion, lifts euro to €900 million

By Sara Rosenberg

New York, Feb. 2 – Howden Group Holdings Ltd. downsized its U.S. seven-year term loan B to $2.925 billion from $3.435 billion and upsized its euro seven-year term loan B to €900 million from €660 million, according to a market source.

In addition, pricing on the U.S. term loan B firmed at SOFR plus 350 basis points, the high end of the SOFR plus 325 bps to 350 bps talk, the source said.

Furthermore, the original issue discount on the euro term loan B was revised to 99.75 from 99.5.

The U.S. term loan B still has a 0.5% floor and an original issue discount of 99.5, the euro term loan B is still priced at Euribor plus 400 bps with a 0% floor, and both loans (B2/B) still have 101 soft call protection for six months.

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

Previously in syndication, the company canceled plans for a repricing of its $1.083 billion term loan B due 2030 that was talked at SOFR plus 325 bps to 350 bps with a 0.5% floor and a par issue price and would have taken the existing term loan due 2030 down from SOFR plus 400 bps.

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 joint bookrunners on the deal. JPMorgan is the lead arranger. Morgan Stanley is the administrative agent.

Recommitments were scheduled to be due at 10 a.m. ET on Friday, the source added.

Proceeds will be used with $1 billion of senior secured notes, upsized from $750 million, and $500 million of senior notes to repay existing U.S. and euro term loans, to refinance an existing second-lien term loan, to pay fees and expenses, to fund the locked account and for general corporate purposes.

Specifically, the company plans to repay its $620 million SOFR plus 525 bps term loan due November 2027, $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.

Howden Group is a London-based insurance intermediary group.

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