Focus Financial Partners Increases Term Loan Facility Size in Heavily Oversubscribed Transaction, Increasing Financial Flexibility

Rhea-AI Summary

Focus Financial Partners Inc. (FOCS) announced an increase in its First Lien Term Loan by $125 million, raising the total to $500 million. The loan, priced at 99.875, will close by the end of January. This move boosts the Term Loan balance to approximately $1.63 billion, up from $1.13 billion as of December 31, 2020. The proceeds will be utilized to repay existing debt and fuel future acquisitions, enhancing financial flexibility. CFO Jim Shanahan highlighted strong demand and M&A momentum as contributing factors.

Positive

• Increased First Lien Term Loan by $125 million to $500 million.
• Total Term Loan balance will reach approximately $1.63 billion.
• Proceeds will repay existing debt and support future acquisitions.
• Strong demand for credit indicates solid market position.

Negative

• None.

NEW YORK, NY / ACCESSWIRE / January 21, 2021 / Focus Financial Partners Inc. (NASDAQ:FOCS) ("Focus"), a leading partnership of independent, fiduciary wealth management firms, announced today that it increased the offering under its First Lien Term Loan ("Term Loan") by $125 million, from the $375 million announced earlier this week, to $500 million. Upon completion, Focus' Term Loan balance will be approximately $1.63 billion, compared to approximately $1.13 billion as of December 31, 2020. The annual interest rate on the Term Loan will remain unchanged at LIBOR + 200 basis points. The $500 million transaction priced at 99.875 and Focus expects it to close by the end of this month. Focus will use the proceeds to repay outstandings under its $650 million First Lien Revolver as well as for future acquisitions to expand its partnership.

"We took advantage of the strong demand for our credit to upsize the offering under our Term Loan by an additional $125 million," said Jim Shanahan, Chief Financial Officer of Focus. "We were very pleased with our M&A momentum in 2020, which we believe will accelerate in 2021. The oversubscription is further reinforcement of our industry-leading position, and the additional debt capital enhances our financial flexibility in a highly cost-effective manner. As always, we remain committed to prudently managing our balance sheet and to our targeted net leverage ratio range of 3.5x - 4.5x."

About Focus Financial Partners

Focus Financial Partners Inc. is a leading partnership of independent, fiduciary wealth management firms. Focus provides access to best practices, resources and continuity planning for its partner firms who serve individuals, families, employers and institutions with comprehensive wealth management services. Focus partner firms maintain their operational independence, while they benefit from the synergies, scale, economics and best practices offered by Focus to achieve their business objectives. For more information about Focus, please visit focusfinancialpartners.com.

Cautionary Statement Concerning Forward-Looking Statements

This release contains certain forward-looking statements that reflect Focus' current views with respect to certain current and future events. These forward-looking statements are and will be, subject to many risks, uncertainties and factors relating to Focus' operations and business environment, including, without limitation, uncertainty surrounding the current COVID-19 pandemic, which may cause future events to be materially different from these forward-looking statements or anything implied therein. Any forward-looking statements in this release are based upon information available to Focus on the date of this release. Focus does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could affect Focus may be found in Focus' filings with the Securities and Exchange Commission.

Investor and Media Contact

Tina Madon
Senior Vice President
Head of Investor Relations & Corporate Communications
Focus Financial Partners
P: +1-646-813-2909
tmadon@focuspartners.com

SOURCE: Focus Financial Partners

View source version on accesswire.com:
https://www.accesswire.com/625304/Focus-Financial-Partners-Increases-Term-Loan-Facility-Size-in-Heavily-Oversubscribed-Transaction-Increasing-Financial-Flexibility

FAQ

What is the increased amount of the First Lien Term Loan for Focus Financial Partners (FOCS)?

The First Lien Term Loan was increased by $125 million, totaling $500 million.

What will Focus Financial Partners do with the proceeds from the Term Loan?

The proceeds will be used to repay outstanding debt and for future acquisitions.

What is the total Term Loan balance for Focus Financial Partners after the increase?

After the increase, the Term Loan balance will be approximately $1.63 billion.

What is the interest rate for the Term Loan from Focus Financial Partners?

The annual interest rate on the Term Loan remains unchanged at LIBOR + 200 basis points.

When is the closing date for Focus Financial Partners' Term Loan transaction?

The transaction is expected to close by the end of January.