Cetera Financial reveals first-and second-lien term loan price talk

By Sara Rosenberg

New York, Aug. 1 – Cetera Financial Group disclosed price talk on its $775 million first-lien term loan and $240 million second-lien term loan in connection with its bank meeting on Wednesday, according to a market source.

Price talk on the first-lien term loan is Libor plus 425 basis points to 450 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 0% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $1,115,000,000 of credit facilities also include a $100 million revolver.

UBS Investment Bank, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc., Antares Capital and Jefferies LLC are the lead banks on the deal.

Commitments are due on Aug. 15, the source added.

Proceeds will be used to help fund the buyout of the company by Genstar Capital.

Leverage through the second-lien debt will be about 5.5 times.

Closing is subject to regulatory approvals and other customary conditions.

Cetera is an El Segundo, Calif.-based network of financial advisers.

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