Duff & Phelps Said to Seek $135 Million Dividend-Paying LoanChristine Idzelis
Duff & Phelps Corp., a financial advisory and investment-banking firm owned by Carlyle Group LP, is seeking a $135 million term loan that would be used in part to pay a dividend to shareholders, according to a person with knowledge of the transaction.
Credit Suisse Group AG is arranging the seven-year financing, said the person, who asked not to be identified because terms of the deal aren’t set. The debt may pay interest at 3.5 percentage points more than the London interbank offered rate, with a 1 percent floor on the lending benchmark, and be sold to investors at 99.25 cents on the dollar, the person said.
A group of investors including private-equity firms Carlyle and Stone Point Capital LLC bought Duff & Phelps in April, according to the New York-based advisory firm’s website. The deal was financed in part by a $349 million term loan that pays interest at the same rate as the additional debt it’s seeking, according to data compiled by Bloomberg.
The new loan, which will also fund the repurchase of a portion of a tax-receivable agreement liability, would be covenant-light, meaning it lacks typical provisions protecting investors such as financial-maintenance requirements, according to the person.