Nuveen Investments Inc., the money manager controlled by Madison Dearborn Partners LLC, set the rate on a $2.56 billion term loan it’s seeking to refinance debt, according to a person with knowledge of the transaction.
The debt, due in 2017, will pay interest at 5 percentage points more than the London interbank offered rate and will be sold at par, said the person, who asked not to be identified because the information is private.
The interest rate will step down to 4.75 percentage points more than Libor when senior secured leverage is less than 4 times, the person said.
Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, the person said.
Bank of America Corp., Deutsche Bank AG, Citigroup Inc., Morgan Stanley, Royal Bank of Canada, UBS AG and Wells Fargo & Co. are arranging the financing commitments were due by 11:30 a.m. today in New York, the person said.
The transaction is expected to close and fund Feb. 28. The debt is rated B2 by Moody’s Investors Service and B by Standard & Poor’s.
Kristyna Munoz, a spokeswoman for Nuveen Investments, declined to comment.
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