Citco $80 million add-on, repricing spread cut to Libor plus 325 bps

By Sara Rosenberg

New York, Feb. 25 - Citco Funding LLC reduced the coupon on its $80 million add-on senior term loan due 2018 and repricing of its existing term loan due 2018 to Libor plus 325 basis points from talk of Libor plus 350 bps to 375 bps, according to a market source.

Also, the original issue discount on the add-on loan was tightened to 99 7/8 from 991/2, the source said. The repricing is still offered at par.

As before, both the add-on and the repriced loan have a 1% Libor floor.

With the repricing, the company is taking its existing term loan down from Libor plus 425 bps with a 1.25% Libor floor.

Proceeds from the add-on will be used to pay a $40 million dividend and place $40 million into Citco Banking Corp. to further strengthen the solvency ratios of the Citco Banks above the minimum regulatory requirements.

UBS Securities LLC and Deutsche Bank Securities Inc. are the bookrunners on the deal.

Commitments were due at 5 p.m. ET on Monday, accelerated from Wednesday, the source said.

Citco is a provider of financial services to hedge funds, private equity and real estate firms, institutional banks, companies and high net worth individuals.

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