Banks Price $1.4 Billion of Leveraged Loans for Janney's Buyout.

A $1.4 billion leveraged-loan package has been priced to fund KKR & Co.'s buyout of money manager Janney Montgomery Scott. The margin for the deal is 3.25 percentage points over the Secured Overnight Financing Rate, with the potential for reduction if certain conditions are met. Investor-friendly protections have also been added. This transaction is the first of many expected acquisition-related financings for buyouts agreed to earlier this year. KKR is also in the process of completing several other buyouts, including Instructure Holdings Inc. More than $60 billion of loan launches have occurred since Labor Day, with an increase in acquisition-related deals. In August, only $28 billion of leveraged loans priced, the lowest amount since July 2023 and the first year-over-year decline in 16 months. [Extracted from the article]