True Potential sets price talk on £675M 2-part bond offering

Price talk on the £675 million-equivalent, two-part offering of five-year secured notes backing the Cinven-led buyout of True Potential LLP is out at 6.5% area on the sterling bonds and 5% area on the euros. Books close at 1 p.m. London time today for pricing thereafter via sole physical bookrunner Credit Suisse (B&D).

Corporate and issue ratings are confirmed at B/B1 on positive and stable outlooks, respectively. Kane Bidco is the issuer.

True Potential is a financial services firm that provides advice, investment platform and fund services to retail investors in the U.K. Cinven agreed to buy a majority stake in the Newcastle-based firm for an undisclosed amount in September 2021.

In their ratings assessments, agencies highlight the firm's integrated model that combines an in-house-built platform and an advice services offering that has led to high client and asset retention. The firm has also reported a strong growth in AUM from £6 billion in 2018 to an expected AUM of more than £20 billion by the end of 2020. At the time of the acquisition agreement, the firm was expected to generate EBITDA of roughly £135 million for the year ended December 2021.

UBS, Goldman Sachs, Barclays, Lloyds and NatWest Markets make up the rest of the bookrunning group.

True Potential was founded in 2007. The company employs 350 people and works with more than 800 restricted advisers.