Morgan Stanley Lines Up $2.3 Billion in Loans for Baldwin Deal

The financing on offer

A person familiar with the transaction said the package is made up of a $2 billion term loan plus a $300 million delayed-draw facility, both with seven-year tenors. The same person said conversations suggest a spread of 3.5 percentage points over the benchmark and an issue level of 99 cents on the dollar, while stressing the details are private.

Additional debt and deal timeline

The buyout financing also includes $750 million in second-lien secured paper that has already been sold in a private placement, according to the person. Sequence Holdings, an AI focused holding company, and Dell's family office agreed in September to acquire the insurance distribution and advisory firm in an all cash deal valued at $7.7 billion, with closing slated for Q1 2027. The lender presentation is set for Tuesday, with commitments due by Nov. 12.

Market backdrop

Only the second leveraged loan is arriving this week, as many issuers remain on the sidelines due to high financing costs and the US midterm elections. In October, junk bond sales fell 18% year over year to $14.6 billion, while leveraged loan issuance came in more than 10% below the total from last October.

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Why it matters for your portfolio

A thin calendar with a high profile launch hints at cautious risk appetite and a focus on terms. Watch where the final terms land relative to guidance of 3.5 percentage points over the benchmark with the offer set at 99 cents per dollar, and how quickly commitments come in before the Nov. 12 deadline. That read will tell you how much demand there is for new leveraged paper as election season heats up.

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