Nuveen $500 million second-lien loan firms at Libor plus 700 bps

By Sara Rosenberg

New York, Feb. 22 - Nuveen Investments set pricing on its $500 million seven-year second-lien term loan (Caa1/CCC) at Libor plus 700 basis points, the tight end of the Libor plus 700 bps to 725 bps talk, according to a market source.

Also, the original issue discount on the loan was tightened to 99 from 98, the source said.

As before, the loan has a 1.25% Libor floor and call protection of 103 in year one, 102 in year two and 101 in year three.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to refinance an existing $500 million second-lien term loan that is priced at 12.5%.

Also, the company's extension offer was left unchanged. Nuveen is looking to extend $500 million of its first-lien term loan debt to May 2017 from 2014 at pricing of Libor plus 550 bps.

Non-extended first-lien term loan pricing is Libor plus 300 bps.

The extended loan will have 101 soft call protection for one year.

Commitments were due at 5 p.m. ET on Wednesday.

Nuveen is a Chicago-based provider of investment services to institutions as well as individual investors.

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