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Blue Owl is vying to lead a $3.3bn refinancing for financial and risk advisory firm Kroll, according to 9fin sources.

The proposed financing package, which is still subject to change, is set to be around $3.3bn in size, sources said. The debt package will bring leverage to approximately 7.5x, they added.

Pricing for the debt is being floated at around SOFR+525bps. This is higher than the pricing that was offered earlier in the process, 9fin reported earlier this month.

Price talk was then considered in the SOFR+450bps-475bps range. One source said the increase in pricing is likely because of the higher than normal leverage.

The pricing could also include a 25bps stepdown should the company reach a leverage level of 6.5x or under, sources said. The financing also includes a PIK component, they added.

Stone Point-backed Kroll has roughly $1.9bn and about €400m in syndicated term loan B debt due 2027 and $450m of second lien debt due 2028, according to 9fin data. Per a Moody’s note, the company also has a $200m receivables financing due June 2027.

Kroll was acquired by a group of investors led by Stone Point and Further Global in 2020. At that time, the company was valued at $4.2bn, according to a press release. The company was known as Duff & Phelps when it was acquired, but has since rebranded.

The company provides valuation services for businesses and alternative investment assets, including private credit. It also provides, but not limited to, cybersecurity advisory as well as corporate finance and restructuring services, per the company website.

Blue Owl, Stone Point, and Kroll did not respond for requests for comment.