LPL Financial driving by with $900 million eight-year senior notes; initial talk 4¼%-4½%

By Paul A. Harris

Portland, Ore., March 4 – LPL Financial Holdings Inc. plans to price a $900 million offering of eight-year senior notes (existing ratings Ba2/BB) in a Thursday drive-by, according to market sources.

Initial talk has the deal coming to yield 4¼% to 4½%, a trader said.

J.P. Morgan Securities LLC is leading the sale.

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

The issuing entity will be wholly owned subsidiary LPL Holdings, Inc.

The San Diego broker-dealer and financial adviser plans to use the proceeds plus cash available for corporate use to redeem its existing $900 million of 5¾% senior notes due 2025.

Along with the notes offering, LPL has undertaken an amendment to its revolving credit facility that would increase its size to $1 billion from $750 million and extend its maturity.

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