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Amwins Seeks $645 Million in Loans for New Mountain LBO

Posted on 09 May 2012

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Amwins Group Inc. held a lender meeting on May 8 in New York to discuss $645 million in loans the company is seeking to back its buyout by New Mountain Capital LLC, according to a person with knowledge of the transaction.

Credit Suisse Group AG is arranging the financing for the distributor of insurance products, which will consist of a $295 million first-lien term piece maturing in seven years and a 7.5- year, $350 million second-lien term portion, said the person, who declined to be identified because the terms are private.

First-lien lenders are being offered one-year soft-call protection of 101 cents on the dollar, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, said the person.

The company is offering second-lien lenders call protection of 103 cents during the first year, the person said. The premium to refinance the debt will drop to 102 cents more than face value in the second year and 1 cent the following year.

Amwins management and employee shareholders reached an agreement to partner with New Mountain Capital in a growth- oriented recapitalization valued at $1.3 billion, according to an April 17 company statement.