DB Shops $350 TL for Nuveen Investments
Nuveen plans to use the proceeds from the new second lien to buy back roughly $220 million of its $250 million in 5% senior unsecured notes due 2010
July 10, 2009
Deutsche Bank is shopping a $350 million second-lien term loan for Nuveen Investments, a Chicago-based asset manager.
Price talk is at Libor plus 300 bps, with an OID of 90, bringing the total yield to 15%, according to Bloomberg. That is about three times what it pays for its five-year bonds, which mature next year , and almost five times more than what it pays for its $2.3 billion term loan B.
Nuveen plans to use the proceeds from the new second lien to buy back roughly $220 million of its $250 million in 5% senior unsecured notes due 2010. And if proceeds are more than $250 million, then Nuveen will use the excess amount to repurchase part of its existing $2.2 billion term loan B due 2014.
The company has reduced its costs by about 15%, and projects an increase in second quarter Ebitda to $95 million from $73 million.
Nuveen is rated B- by Standard & Poor’s.
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