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Primary High Yield: Covenant Analysis of Focus Financial’s New 2031 Secured Notes Now Available

Legal Research: Mitch Oates Relevant Items: Secured Notes Due 2031 Primary Covenant Analysis Preliminary Offering Memorandum Focus Financial Partners is issuing senior secured notes due 2031 (the “2031s”). The proceeds of the bonds, together with new term loan borrowings, will be used to pay a $550 million cash distribution to shareholders and to refinance existing term loan and revolving debt. Price talk is 6.75% to 7%. We have completed a comprehensive analysis of the covenant package relating to Focus Financial’s senior secured notes due 2031, including key considerations. We encourage users to review the full covenant analysis, available HERE.   Flexibility Under the New Notes The company’s flexibility under the new notes is summarized in the table below:     Material Protections and Material Aggressive Terms The following table summarizes certain material bondholder protections and material aggressive terms included in the new 2031s:     Capital Structure The company’s pro forma capital structure is below:   To request a covenant analysis of any other new bond or loan offering, please sbmit the offering memorandum or loan document to us at [email protected].