Edelman Financial Engines launches 1st-lien, 2nd-lien extensions and add-ons

Edelman Financial Engines LLC has launched new senior secured credit facilities of around $2.8 billion via Morgan Stanley and J.P. Morgan. A lender call will be held today at 2:30 p.m. ET.

The transaction comprises:

* $1.426 billion first-lien term loan B amendment and extension

* $800 million fungible add-on first-lien term loan B

* $475 million second-lien term loan amendment

* $100 million fungible add-on to the second-lien facility

Proceeds from the additional debt will be used alongside cash on hand to fund a distribution to shareholders.

The issuer was last in the market in 2018 with the first- and second-lien term loans supporting the takeover of Financial Engines by The Edelman Financial Center. A $1.455 billion first-lien term loan due 2025 was priced at L+325 with a 0% LIBOR floor, while a $475 million second-lien facility due 2026 was wrapped at L+675 with a 0% floor.

The firm provides financial-planning and investment-management services. Earlier today, Warburg Pincus announced its acquisition of a minority stake in the firm, valuing the company at around $7.3 billion including debt, according to reports. The firm has more than $260 billion in assets under management. Hellman & Friedman retains a majority stake in the company.