National Financial Partners Corp. says it has taken several steps to reduce exposure to refinancing risk.
NFP, New York (NYSE:NFP), has worked with a unit of Bank of America Corp., Charlotte, N.C., to set up a $100 million, 4-year revolving credit facility due 2014; take out a $125 million, 4-year term loan; and issue $125 million in 4% convertible senior notes due 2017.
The financial services distributor, which was growing rapidly through acquisitions before the recent recession hit, has used the financing to buy back and retire about $230 million in 0.75% convertible senior notes due 2012 through a tender offer that was completed Thursday. NFP also paid all amounts it owed to the lenders who provided an older credit facility that was due August 2011.
NFP says it has not yet drawn any amounts from the revolving credit facility.