Tax firm Ryan premarkets $1bn-plus loan package to refinance debt

David Brooke

15 October 2023•1 min read

Tax software business Ryan is working with bankers at Jefferies to gauge investor feedback on a potential $1bn-plus loan syndication, according to 9fin sources.

The debt package comprises a $950m term loan B, a $190m delayed-draw tranche, and a $225m revolving credit facility. The company is marketing the deal on pro forma adjusted EBITDA of $213m, according to one of the sources.

Other firms involved in the transaction include SMBC, RBC, BMO and Antares, according to sources. Antares declined to comment, while SMBC, RBC and BMO did not respond to requests for comment.

Proceeds of the best-efforts transaction would be used to refinance existing debt. The deal would refinance a previous capital structure led by Bank of America, comprising a $590m term loan A, $200m DDTL, and $185m RCF.

The company is floating early pricing indications of SOFR+400bps-425bps on the term loan portion of the proposed financing package.

Ryan’s ownership is split between Canadian private equity firm Onex Corporation, the PE arm of Ares Management,and Ryan’s management team. Onex acquired a minority stake in 2018, and Ares followed with an investment last year valuing the company at $2.5bn.

Ares declined to comment for this article. Onex, Jefferies, and Ryan did not respond to requests for comment.