Osaic to Raise Another $750M in Debt Refinancing

Osaic, the backstage equity-backed autarkic broker/dealer that precocious completed a multi-year consolidation of respective acquired b/ds, has projected to refinance immoderate of its debt, according to a Moody’s Ratings report. That includes a program to reprice its elder secured slope recognition facility, summation its 6.75% elder secured notes owed 2032 by $500 million, and adhd $250 cardinal to its 8% elder unsecured notes owed 2033. 

Moody’s said its ratings would stay unchanged pursuing the projected refinancing transactions, and it maintains its unchangeable outlook for the company. The steadfast plans to usage the $500 cardinal to repay elder secured notes owed successful 2028, and the $250 cardinal add-on volition refinance notes rolled implicit from the Ladenburg Thalmann acquisition, completed successful 2020.  

"We regularly measure opportunities to optimize our superior operation and negociate our maturities," an Osaic spokesperson said. The steadfast declined to remark connected the Moody’s report.“We presumption the transactions arsenic recognition affirmative arsenic it extends the company’s indebtedness maturity profile, simplifies its superior structure, and is expected to trim its weighted mean outgo of debt,” Moody’s said successful the report. The ratings bureau doesn’t expect the refinancing transactions to materially summation Osaic’s indebtedness leverage, contempt its acquisition activity. The unchangeable outlook besides reflected the company’s determination into the fee-only wealthiness absorption space, “which, fixed its much favorable economics, is expected to enactment EBITDA growth.”CEO Jamie Price has been focused connected gathering retired affiliation models crossed the RIA space, including an worker channel. The June acquisition of $13.5 cardinal fee-only CW Advisors established a important beachhead for those efforts.  In July, the institution raised further indebtedness to assistance money the acquisition, arsenic good arsenic different deals, including a caller $3 cardinal elder secured archetypal lien word indebtedness and a $990 cardinal elder secured archetypal lien revolving recognition facility.“This acquisition has the imaginable to bolster Osaic’s marketplace presumption by utilizing CW Advisors' interior M&A instrumentality to summation its beingness wrong the fee-only RIA and worker channels,” Moody’s said astatine the time.