Bloomberg News

Nuveen’s $500 Million 2nd-Lien Term Loan Rises in Trading

February 24, 2012

Feb. 23 (Bloomberg) -- Nuveen Investments Inc.’s $500 million second-lien term loan to refinance debt due in July 2015 rose in initial trading, according to data provider Markit Group Ltd.

The seven-year debt began trading at 100.5 cents on the dollar, according to Markit. The financing for the money manager owned by Madison Dearborn Partners LLC was sold to investors at 99 cents, according to data compiled by Bloomberg.

Deutsche Bank AG arranged the deal for the Chicago-based company, the data shows. Madison Dearborn, a private equity firm with $18 billion of capital under management, acquired Nuveen Investments for $5.56 billion in November 2007, the data show.

The loan pays interest at 7 percentage points more than the London interbank offered rate, with a 1.25 percent minimum on the benchmark, Bloomberg data show. Libor, the rate at which banks say they can borrow in dollars from each other, serves as a reference for about $360 trillion of financial instruments worldwide.

First-lien debt is repaid first in a bankruptcy or liquidation, second-lien debt is repaid next. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.

--Editors: Chapin Wright, Faris Khan

To contact the reporter on this story: Michael Amato in New York at Mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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