Mercer Advisors completed a $1.9 billion debt refinancing alongside a $340 million revolving credit facility, entering the broadly syndicated loan market for the first time.
The wealth management firm refinanced its existing private debt through a new syndicated Term Loan B facility with a seven-year maturity.
It also established a substantially larger revolving credit facility with a five-year maturity.
The transaction was meaningfully oversubscribed.
Mercer said the new financing lowers its borrowing costs, extends its debt maturity profile, and broadens its lender base to include a larger group of institutional investors.
The revolving facility provides additional liquidity for investments in the firm’s clients, employees, technology, and broader platform.
The refinancing follows Mercer surpassing $110 billion in client assets.
The firm also reported double-digit organic growth excluding market appreciation for two consecutive years and has added a record number of M&A partners over the past 18 months.
Goldman Sachs Bank USA, BMO Capital Markets, JPMorgan Chase Bank, RBC Capital Markets, UBS Securities, Barclays Bank, KeyBanc Capital Markets, Morgan Stanley Senior Funding, MUFG Bank, The Bank of Nova Scotia, and TD Securities acted as joint lead arrangers and joint lead bookrunners.
Goldman Sachs Bank USA also served as lead-left arranger and administrative agent. JPMorgan Chase served as syndication agent, while BMO Capital Markets acted as documentation agent.
KEY QUOTES:
“Tapping the syndicated loan market for the first time is a milestone for our firm, and the reception we received from institutional investors speaks to the strength of the business we’ve built. This structure gives us meaningfully lower financing costs and a broader, more diversified investor base.”
Gün Keresteci, CFO of Mercer Advisors
“This transaction puts us in an even stronger position to keep building a firm where clients can benefit from the full strength of our platform and advisors can do the best work of their careers.”
Dave Welling, CEO of Mercer Advisors
