NEW YORK, NY / ACCESSWIRE / January 19, 2021 / Focus Financial Partners Inc. (NASDAQ: FOCS) (“Focus”), a leading partnership of independent trust wealth management companies, today announced the launch of a transaction to increase the size of its loan to Senior Term (“Term Loan”) of $ 375 million. Focus expects to complete this transaction in January 2021 and use the proceeds to repay outstanding loans on its $ 650 million First Lien revolver (“Revolver”). There will be no change to the existing terms of the Revolver as a result of this reduction in borrowing. As of December 31, 2020, Focus’s outstanding term loan and revolver balances were approximately $ 1.13 billion and $ 380 million, respectively.
“We are taking advantage of the positive credit and interest rate environment to increase the borrowing capacity of our Revolver,” said Jim Shanahan, CFO of Focus. “Our M&A momentum is strong, and we expect it will only intensify this year as more of our partner companies accelerate their growth through mergers. In addition, our partner company Connectus has a strong pipeline and will further expand its global presence in 2021. This transaction resets our dry powder, increasing our flexibility to capitalize on this momentum. However, we continue to manage our balance sheet prudently and reaffirm our 3.5x to 4.5x net leverage ratio target range. Our strong cash flow generation allows us to optimize our use of debt as we grow our business.
About Focus Financial Partners
Focus Financial Partners Inc. is a leading partnership of independent trust wealth management companies. Focus provides access to best practices, resources and continuity planning for its partner firms that provide individuals, families, employers and institutions with comprehensive wealth management services. Focus’s partner companies maintain their operational independence, while benefiting from the synergies, scale, economy and best practices offered by Focus to achieve their business objectives. For more information on Focus, please visit focusfinancialpartners.com.
Caution Regarding Forward-Looking Statements
This press release contains certain forward-looking statements that reflect Focus’s current views regarding certain current and future events. These forward-looking statements are and will be subject to numerous risks, uncertainties and factors relating to Focus’s operations and business environment, including, without limitation, the uncertainty surrounding the current COVID-19 pandemic, which may lead to significantly different future events. of these forward-looking statements or anything implied therein. All forward-looking statements contained in this press release are based on information available to Focus as of the date of this press release. Focus does not undertake to publicly update or revise its forward-looking statements, even if experience or future changes clearly indicate that the statements expressed or implied will not be made. Additional information on risk factors that could affect Focus can be found in the documents filed by Focus with the Securities and Exchange Commission.
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