Advisor Group driving by with $475 million five-year secured notes; initial talk low-to-mid 9% area

By Paul A. Harris

Portland, Ore., Aug. 4 – Advisor Group Holdings, Inc. plans to price a $475 million offering of five-year senior secured notes (B2/B-/B) in a Thursday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the low-to-mid 9% area, according to a sellside source.

The order book for the notes was deal-size at mid-morning, the sellsider said, adding that the notes offering came into the market on the back of around $500 million of reverse inquiry.

BofA Securities Inc., U.S. Bancorp Investments Inc., BMO Capital Markets Corp. and Truist Securities Inc. are the joint bookrunners.

The Rule 144A and Regulation S notes come with two years of call protection.

The Phoenix-based wealth management services provider plans to use the proceeds to finance its acquisition of American Portfolios Holdings, Inc., which was announced on June 16, 2022.

The issuing entity will be AG TTMT Escrow Issuer LLC, which will merge with Advisor Group Holdings upon completion of the American Portfolios Holdings acquisition.

Any proceeds remaining from Advisor Group's Thursday sale of senior secured notes will be used for general corporate purposes, which may include financing for the acquisition of Infinex Financial Holdings, Inc., which was announced on May 13.

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