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Fidelis partnership cuts TFP borrowing cost in $2bn term loan deal
The new Term Loan B is priced at SOFR plus 2.75 percent, versus SOFR plus 5 percent previously, lowering the company’s all-in rate to about 6.37 percent from about 8.62 percent at the same SOFR reference level.
Fidelis Partnership has priced a $2.04 billion Term Loan B for TFP, replacing a unitranche facility held by private credit lenders, Insurance Business reports. The refinancing is designed to cut TFP’s cost of debt by 225 basis points and is expected to close in August, subject to customary closing conditions.
The new loan is priced at SOFR plus 2.75 percent, down from SOFR plus 5 percent on the existing unitranche. Using a SOFR level of about 3.62 percent as of August 13, the new all-in rate comes to roughly 6.37 percent, compared with about 8.62 percent on the prior facility.
Insurance Business said the shift from private credit to the broadly syndicated loan market enabled the spread compression. Unitranche deals, which bundle senior and subordinated debt for a concentrated lender group, typically price with wider spreads than syndicated loans.
To access the Term Loan B market, TFP needed public credit ratings, which it received: Ba3 (Moody’s, stable), BB- (Fitch, positive), and B+ (S&P, positive). The outlet added that the rating agencies cited TFP’s underwriting track record and financial profile, and TFP reported $5.4 billion of written premium for the year ended December 31, 2025.