Bank of Montreal is serving as administrative agent on a secured revolving credit facility totaling $250 million for AssetMark. JPMorgan Chase Bank, U.S. Bank and Wells Fargo Securities acted as joint lead arrangers and joint bookrunners.
Concurrently, AssetMark will draw down $75 million on the new credit facility and use those funds plus cash to retire its $124 million existing term loan, which had a rate of LIBOR plus 3%.
The new credit facility has a four-year maturity. Interest will be based on LIBOR plus an applicable margin, with the applicable margin being tied to the company’s total leverage ratio. At the initial funding levels, the interest rate will be LIBOR plus 2%.
“We are very excited about this opportunity to both significantly increase our access to capital and reduce our ongoing borrowing costs,” Gary Zyla, executive vice president and CFO of Assetmark, said. “With this added financial flexibility, we plan to continue the strategic growth of our business, both through acquisitions as well as investments in our operations to further drive organic growth. We are extremely grateful to our ongoing bank partners and look forward to the opportunities ahead of us in 2021.”
AssetMark is a provider of wealth management and technology solutions.
