AssetMark Announces Five Year Credit Facility Extension and Upsize to $500 Million

CONCORD, Calif., Jan. 12, 2022 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE: AMK) announced today 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%).

“We are very excited about the opportunity to significantly increase our access to capital and reduce our ongoing borrowing costs, highlighted by margin improvement of 12.5 bps,” said Gary Zyla, EVP, Chief Financial Officer. “The increase of the commitment under the credit facility and the extension of the maturity further enhances our already strong capital and liquidity position and adds to our financial flexibility. We plan to continue the strategic growth of our business both through acquisitions as well as investments in our operations to further drive organic growth.”

BMO Capital Markets Corp., JPMorgan Chase Bank, N.A., Truist Securities, Inc., U.S. Bank National Association and Wells Fargo Securities, LLC, all acted as Joint Lead Arrangers and Joint Bookrunners on the transaction.

Zyla added, “We are extremely grateful to our on-going bank partners and welcome our new partners. We look forward to the opportunities ahead of us in 2022.”

About AssetMark Financial Holdings, Inc.

AssetMark is a leading provider of extensive wealth management and technology solutions that power independent financial advisors and their clients. Through AssetMark, Inc., its investment adviser subsidiary registered with the U.S. Securities and Exchange Commission, AssetMark operates a platform that comprises fully integrated technology, personalized and scalable service, and curated investment platform solutions designed to make a difference in the lives of advisors and their clients.

SOURCE: AssetMark Financial Holdings, Inc.

Taylor J. Hamilton, CFA
Head of Investor Relations

Alaina Kleinman
Head of PR & Communications