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IntraFi Network launches $540M 2nd-lien term loan; commitments due Oct. 29

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IntraFi Network launches $540M 2nd-lien term loan; commitments due Oct. 29

Lead arranger Nomura has launched a $540 million covenant-lite second-lien term loan for IntraFi Network LLC that will be used to fund a shareholder distribution, according to sources. Commitments are due by noon ET on Oct. 29.

Price talk for the eight-year term loan is L+625-650, with a 0.50% Libor floor and an original issue discount of 99. That indicates a yield to maturity of 7.10%-7.36%. There are hard calls of 102 and 101 in years one and two, respectively.

The issuer was last in the market in January with a $140 million add-on to its covenant-lite first-lien term loan due November 2026 (L+375, 0% Libor floor) that was used to refinance the company's then outstanding second-lien term loan. That brought the total first-lien tranche size at the time to $1.1 billion. Nexus Buyer LLC is the borrower.

S&P Global Ratings has affirmed the B- issuer credit rating on the borrower and revised the outlook to stable from positive. The new second-lien term loan was assigned a CCC issue rating and a 6 recovery rating, while the first-lien rating was affirmed at B- with a recovery rating of 3. Moody's downgraded the borrower to B3 from B2 and affirmed the first-lien rating at B2 with a stable outlook. The new second-lien term loan is rated Caa2.

IntraFi Network, backed by The Blackstone Group, provides Federal Deposit Insurance Corp.-insured deposit placement and sweep services for financial transactions in the U.S.