Edelman lifts first-lien term loan pricing to Libor plus 375 bps

By Sara Rosenberg

New York, March 19 – Edelman Financial Engines (Edelman Financial Center LLC) increased pricing on its fungible $800 million seven-year covenant-lite add-on first-lien term loan B and $1,425,900,000 amended and extended seven-year covenant-lite first-lien term loan B to Libor plus 375 basis points from Libor plus 350 bps, according to a market source.

In addition, the Libor floor on the first-lien term loan debt (B2/B) was raised to 0.75% from 0.5%, the MFN was changed to 75 bps with a 12 months sunset from 100 bps with a six months sunset, and a springing maturity to the second-lien term loan was added, the source said.

The add-on first-lien term loan has an original issue discount of 99.5, and the amendment fee on the existing term loan is 12.5 bps.

Non-consenting lenders will remain in the existing first-lien term loan B due 2025.

The company is also getting a fungible $100 million covenant-lite add-on second-lien term loan due July 2026 and amending its existing $475 million covenant-lite second-lien term loan due July 2026.

Pricing on the second-lien term loan debt (Caa2/CCC+) is Libor plus 675 bps with a 0% Libor floor. The add-on term loan has an original issue discount of 99, and the amendment consent fee is 25 bps.

The first-lien term loan debt has 101 soft call protection for six months, and the second-lien term loan debt has 101 hard call protection for one year with a par call with an IPO.

Morgan Stanley Senior Funding Inc. and JPMorgan Chase Bank are the leads on the $2,800,900,000 of senior secured credit facilities, with Morgan Stanley the left lead and administrative agent on the first-lien debt and JPMorgan the left lead and administrative agent on the second-lien debt.

Commitments continued to be due at noon ET on Friday, the source added.

Proceeds from the add-on term loans will be used with cash on hand to fund a distribution to shareholders, and to pay related fees and expenses.

The company also announced on Monday a strategic investment from Warburg Pincus, which will become a minority equity owner.

The investment values the company at $7.3 billion and is expected to close in the second quarter.

Edelman, a Hellman & Friedman portfolio company, is a financial planning and investment management firm.

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