The Baldwin Group, the brand name for The Baldwin Insurance Group, an independent insurance distribution firm, received commitments from lenders to reprice its existing $837.9 million senior secured first lien term loan facility maturing on May 24, 2031 and enter into an incremental term loan facility amendment to its existing credit agreement pursuant to which Baldwin Holdings is expected to borrow $100 million of incremental term B loans under the credit agreement, which would increase the aggregate principal amount of its existing term loan facility from $837.9 million to $937.9 million.
The term loan facility will bear interest at term SOFR, plus an applicable margin of 300 bps, with a margin step-down to 275 bps at a first lien net leverage ratio of 4.00x or below. The incremental term loan B will have the same terms as the existing term loan facility, including, for the avoidance of doubt, the same maturity date. We expect the repricing of the existing term loan facility and the incurrence of the incremental term loan B to close on Jan. 10, 2025, subject to customary closing conditions, including the finalization and execution of definitive documentation.
Baldwin Holdings intends to use the net proceeds from incremental term loan B to settle its contingent earnout liabilities as they become due and to pay related fees, costs, expenses and accrued interest, and any remaining proceeds for general corporate purposes.
