NEW YORK, NY / ACCESSWIRE / April 23, 2020 / Focus Financial Partners Inc. (NASDAQ:FOCS) (“Focus”), a leading partnership of independent, fiduciary wealth management firms, announced today that it entered into two additional floating to fixed interest rate swap agreements (the “Swap”) totaling $450 million. The first Swap effectively fixes the variable interest rate on $250 million of the approximately $1.14 billion in total borrowings under Focus’ First Lien Term Loan (“Term Loan”) at 2.537% (inclusive of the 2.0% LIBOR spread) over the next four years. The second Swap effectively fixes the variable interest rate on $200 million of the total borrowings under the Term Loan at 2.5315% (inclusive of the 2.0% LIBOR spread) over the next four years.
Including the $400 million interest rate swap Focus executed in March 2020, $850 million, or approximately 75%, of the borrowings under its Term Loan have been swapped from a variable interest rate to a fixed rate. The weighted average rate on these borrowings is now 2.62% for approximately the next four years.
The residual amount of approximately $286 million in borrowings under the Term Loan remains floating at LIBOR plus 2.0%. There are no changes to the existing terms of the Term Loan or First Lien Revolver as a result of these transactions.
“We continue to take advantage of opportunities to decrease our financing costs by reducing our variable interest rate exposure,” said Jim Shanahan, Chief Financial Officer of Focus. “We are a significant beneficiary of the low interest rate environment, locking in attractive fixed rates for a substantial portion of our borrowings. As a result of the swaps we completed, we have the equivalent of investment grade pricing on $850 million, or approximately 75% of our outstanding Term Loan. The strength and resiliency of our business model are further enhanced as we optimize our cost of debt.”
About Focus Financial Partners Inc.
Focus Financial Partners Inc. (NASDAQ:FOCS) (“Focus”) is a leading partnership of independent, fiduciary wealth management firms. Focus provides access to best practices, resources, and continuity planning for its partner firms who serve individuals, families, employers and institutions with comprehensive wealth management services. Focus partner firms maintain their operational independence, while they benefit from the synergies, scale, economics and best practices offered by Focus to achieve their business objectives. For more information about Focus, please visit www.focusfinancialpartners.com.
Cautionary Note Concerning Forward-Looking Statements
This release contains certain forward-looking statements that reflect Focus’ current views with respect to certain current and future events. These forward-looking statements are and will be, subject to many risks, uncertainties and factors relating to Focus’ operations and business environment, including without limitation, uncertainty surrounding the current COVID-19 pandemic, which may cause future events to be materially different from these forward-looking statements or anything implied therein. Any forward-looking statements in this release are based upon information available to Focus on the date of this release. Focus does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any statements expressed or implied therein will not be realized. Additional information on risk factors that could affect Focus may be found in Focus’ filings with the Securities and Exchange Commission.
Investor and Media Contact
Tina MadonSenior Vice President
Head of Investor Relations & Corporate Communications
Focus Financial Partners
SOURCE: Focus Financial Partners via EQS Newswire