MSCI readies launch of $1.13 billion term loan for repricing

By Sara Rosenberg

New York, March 1 - MSCI Inc. is planning on getting a $1.125 billion senior secured term loan that will be used to reprice its existing loan, according to a news release.

Also, the company plans on amending certain covenants in its senior secured credit facility.

Chatter is that a call to launch the deal will take place on Wednesday, but no official word was available by press time, a market source said.

In connection with the repricing, $90 million of the existing $1.2 billion loan maturing in 2016 will be repaid.

The existing loan, obtained in June 2010 in connection with the acquisition of RiskMetrics Group Inc., is priced at Libor plus 325 basis points with a step-down to Libor plus 300 bps at 2.75 times leverage and a 1.5% Libor floor, and it was sold at an original issue discount of 991/2.

Morgan Stanley Senior Funding Inc. is the sole lead arranger on the deal and a joint bookrunner with Bank of America Merrill Lynch. UBS Securities LLC is a co-manager.

The company anticipates completing the repricing process in the next two weeks.

MSCI is a New York-based provider of investment decision support tools to investors, including asset managers, banks, hedge funds and pension funds.

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