AssetMark Financial Holdings, Inc. announced that it has entered into an Amended and Restated Credit Agreement with ten banks, led by Bank of Montreal as Administrative Agent and Sustainability Coordinator. The agreement provides for a $500 million Senior Secured Credit Facility, comprised of a $375 million revolving facility and a $125 million term loan. The agreement also carries an accordion feature allowing for an additional $100 million of capacity, subject to customary terms and conditions.
The new credit facility will mature in 2027. Interest will be based on SOFR plus an applicable margin, with the applicable margin being tied to the Company's total leverage ratio. At the initial funding levels, the interest rate will be adjusted term SOFR + 1.875%.
AssetMark will use the new term loan to retire $115 million outstanding under its existing revolving facility (which had a rate of LIBOR + 2.00%).