Morgan Stanley has launched a $2.3 billion debt offering to help finance the acquisition of Baldwin Insurance Group Inc. by billionaire Michael Dell's family office and Sequence Holdings. The package includes a $2 billion term loan and a $300 million delayed-draw term loan, both with a seven-year maturity, according to a person familiar with the matter.
Pricing is being discussed at 3.5 percentage points over the benchmark rate, with the loans offered at a discounted price of 99 cents on the dollar. The financing will also include $750 million of second-lien secured debt, which has already been privately placed.
The debt sale is only the second leveraged loan offering to launch this week. Higher borrowing costs and the US midterm elections have discouraged companies from tapping the market. Last month, junk-bond sales fell 18% year over year to $14.6 billion, while leveraged loan sales were more than 10% below last October's total.
Dell's family office and Sequence, an AI-focused holding company, agreed in September to buy insurance distribution and advisory firm Baldwin in an all-cash deal valued at $7.7 billion. The transaction is expected to close in the first quarter of 2027. A lender call is scheduled for Tuesday, and commitments are due Nov. 12.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing