Nuveen Investments Inc., the money manager controlled by Madison Dearborn Partners LLC, is seeking a $2.57 billion term loan, according to a person with knowledge of the transaction.
Proceeds will be used to refinance the company’s existing first-lien term loans, said the person, who asked not to be identified because the information is private.
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, according to the person.
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 for the Chicago-based company and commitments are due Jan. 22 at 5 p.m. in New York, according to the person.
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.
Kathleen Cardoza, a spokeswoman for Nuveen Investments, and Chuck Dohrenwend, a spokesman for Madison Dearborn, declined to comment.