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Leveraged Loans

Truist Insurance Holdings LBO backed by $9.2B debt financing commitment

The financing will include $6.1 billion of funded first-lien debt, a $1.9 billion senior unsecured bridge loan and a $1.175 billion revolver.

Committed debt financing backing the acquisition of Truist Insurance Holdings (TIH) from Truist Financial Corp. (NYSE: TFC) by Stone Point Capital and Clayton, Dubilier & Rice (CD&R) totals $9.175 billion, of which $8 billion is funded debt, according to market sources.

The committed financing package is provided by JP Morgan, Morgan Stanley, Stone Point, BofA Securities, Wells Fargo, Truist Securities, Barclays, RBC Capital Markets, Citi, Goldman Sachs, KKR Capital Markets, BNP Paribas, Mizuho and TD Securities.

The financing will include $6.1 billion of funded first-lien debt comprising a $4 billion term loan B with JP Morgan serving as left lead arranger and a $2.1 billion senior secured bridge loan with Morgan Stanley as lead left. A $1.9 billion senior unsecured bridge loan may be financed in the second-lien term loan or unsecured high-yield market. A $1.175 billion revolving credit facility rounds out the financing package.

Truist announced on Feb. 20 that it had reached an agreement to sell the remaining stake in subsidiary TIH to an investor group led by Stone Point and CD&R. Mubadala Investment Company is part of the investor group, among others. The all-cash deal values TIH at $15.5 billion, or roughly 18x 2023 core EBITDA for the business, according to Truist. Closing of the acquisition is expected in Q2 2024, after which TIH will operate as a standalone entity.

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