Insurance Brokerage Company, Trucordia, Launches $1.9B Syndicated Loan to Replay Private Credit Debt

Trucordia, the insurance brokerage based out of Lindon, Utah has made a bold move - the launch of an enormous $1.9 billion first-lien term loan. This financial manoeuvre is aimed at repaying the company’s debt and will go towards various corporate purposes.

A compelling fact about Trucordia’s plan includes a seven-year term loan, discussed at S+325-350, with a zero percent floor and an original issue discount (OID) of 99.5. This implies that the yield upon maturity could be in the range of 7.88%-8.15%. Other key features of this arrangement include two margin step-downs of 25 bps each at 0.5x and 1x. There may be an additional step-down of 25 basis points upon an IPO. Lenders are being offered the sweetener of six months of soft call protection.

Recently, Trucordia announced a substantial strategic investment from Carlyle’s Global Credit platform to the tune of $1.3 billion, effectively valuing the firm at $5.7 billion. As a part of this transaction, units will be repurchased from existing minority investors, thus reducing leverage. As a result, Carlyle will acquire nearly 49% of Trucordia.

This aggressive move to manage debt signals Trucordia’s commitment to financial stability and robust future growth. It also underscores the ability of businesses in today’s volatile economic landscape to engineer innovative financial solutions that not only protect their interests but set the pace for a more secure future.