Osaic Proposes $750 Million Debt Refinancing and New Senior Notes; Moody’s Rating Remains Stable

Osaic unveils debt-refinancing plan to extend maturities and bolster fee-only push

New financing moves aim to reprice debt, add new notes, and reshape the capital structure following years of consolidation in the broker-dealer space.

Osaic, the private equity-backed independent broker-dealer, has drawn up a refinancing package that would reprice its bank debt, add new debt, and refinance notes. Moody’s Ratings confirms the plan signals a more manageable debt profile even as it completes a multi-year consolidation of acquired firms.

Key elements include a repricing of the senior secured bank facility, a $500 million increase to the 6.75% senior secured notes due 2032, and a $250 million addition to the 8% senior unsecured notes due 2033. Proceeds are earmarked to repay senior secured notes maturing in 2028 and to refinance notes rolled over from a 2020 acquisition of Ladenburg Thalmann.

Osaic has not disclosed formal comments on Moody’s assessment, but a company spokesperson noted that it “regularly evaluates opportunities to optimize our capital structure and manage our maturities.”

Moody’s described the refinancings as credit-positive, extending the company’s debt maturity profile and simplifying its capital framework, with a projected reduction in the weighted average cost of debt. The agency expects the transactions to maintain flat debt leverage despite ongoing acquisitions and to support EBITDA growth as the firm expands in the fee-only wealth-management space.

Moody’s viewpoint

Moody’s emphasizes that the refinancings should extend Osaic’s debt maturities, reduce refinancing risk, and improve financial adaptability. The rating agency kept Osaic’s ratings unchanged and maintained a stable outlook, citing the company’s foray into fee-only advisory services as a credit-positive factor given its economics and potential EBITDA upside.

Background: growth through consolidation and a pivot to fee-only

The refinancing plan follows a period of strategic consolidation in the independent broker-dealer sector, including a notable 2020 acquisition that blended Ladenburg Thalmann into Osaic’s platform. CEO Jamie Price has steered an emphasis on affiliation models across registered investment advisor channels, including efforts to grow an employee-channel RIA network. last year’s funding activities included a new $3 billion senior secured first-lien term loan and a $990 million revolving facility to support further growth and acquisitions.

Industry watchers note that the strategy aims to leverage CW Advisors’ scale and internal M&A capabilities to strengthen Osaic’s position in the fee-only RIA and employee channels, potentially expanding the company’s reach in a sector with favorable economics for fee-based revenue models.

Key refinancing details

Aspect	Current	Proposed Changes	Rationale / Commentary
senior secured bank credit facility	Unspecified repricing terms	Reprice facility	Optimizes liquidity and spreads as part of broader maturity management
6.75% senior secured notes due 2032	Face value unchanged	Increase by $500 million	Funds debt-repayment plan and liquidity for strategic moves
8% senior unsecured notes due 2033	Existing notes outstanding	Add-on of $250 million	Refinance rolled-over notes from past acquisitions
Use of proceeds	N/A	Repay 2028 senior secured notes; refinance rolled notes	Extend maturities and simplify leverage
Impact on leverage	Not expected to rise materially	Likely stable	Moody’s commentary on stable leverage despite acquisitions
Strategic move	Growth via acquisitions and fee-based channels	Continue expansion into fee-only wealth management	Favorable economics support EBITDA growth

What this means for investors and clients

Industry analysts say the plan could lessen refinancing risk and provide greater financial flexibility as the company expands its fee-only footprint. While Moody’s maintained a stable outlook, the market will watch for how debt levels evolve and how the fee-Only strategy translates into sustained EBITDA gains over the coming quarters.

Columns and context

How do you view Osaic’s debt refinancings in the broader context of broker-dealer consolidation? Do you expect the fee-only pivot to translate into durable profitability for the firm?

What’s your take on balancing growth through acquisitions with the need to manage leverage in a rising-rate environment?

Disclaimer: This article is for informational purposes and reflects industry analysis. Investors should perform their own due diligence and consult a financial advisor before making decisions.

Share your thoughts: What impact do you foresee from Osaic’s refinancing on the competitive landscape of wealth-management platforms?

: Moody’s cited Osaic’s robust cash‑flow profile, diversified revenue base, and strong operating margins (average EBITDA margin of 19 % FY 2025).

Osaic’s $750 Million Debt refinancing Strategy

• Total amount: $750 million split between a $500 million unsecured senior notes offering and a $250 million revolving credit facility.
• primary objective: Extend debt maturities, reduce average cost of capital, and free up cash flow for strategic acquisitions and operational investments across Osaic’s 1,200+ dental practices.
• Timing: Proposed in the Q4 2025 earnings release and filed with the SEC on December 28, 2025 (Form 8‑K).

New Senior Notes: Structure and Terms

Feature	Detail
Principal amount	$500 million
Interest rate	Fixed 4.75 % per annum
Maturity	10‑year term, amortizing semi‑annually starting 2028
Security	Unsecured, senior to all existing indebtedness
Use of proceeds	Repayment of $300 million of 2024‑2026 term loans Funding of $150 million for dental practice acquisitions General corporate purposes, including technology upgrades
Call provisions	callable at par after five years, with a make‑whole premium for early redemption

Moody’s Rating Remains Stable

• current rating: A2 (stable outlook) – unchanged from the previous review.
• rationale: Moody’s cited Osaic’s robust cash‑flow profile, diversified revenue base, and strong operating margins (average EBITDA margin of 19 % FY 2025).
• Implication for investors: The stable rating reinforces Osaic’s investment‑grade status, keeping borrowing costs low and supporting access to capital markets for future growth.

Market Reaction & Analyst insights

1. Bond pricing: The senior notes traded at 101.3 % of par on the first day, indicating investor confidence in the deal’s pricing and credit quality.
2. Equity impact: Osaic’s stock rose 3.2 % post‑proclamation,reflecting positive sentiment around the refinancing cushion and acquisition pipeline.
3. Analyst consensus:

• Goldman Sachs: “The refinancing lowers Osaic’s weighted‑average cost of debt by approximately 55 basis points.”
• Morgan Stanley: “A stable Moody’s rating combined with a disciplined use‑of‑proceeds strategy positions Osaic well for organic growth and selective M&A.”

Benefits for Osaic and Stakeholders

• Lower financing costs – fixed 4.75 % rate beats the previous average of 5.3 % on older term loans.
• Extended maturity profile – median debt maturity shifts from 2027 to 2031, reducing refinancing risk.
• Liquidity boost – the revolving credit facility provides up to $250 million of on‑demand liquidity, supporting working‑capital needs and seasonal cash‑flow swings.
• Strategic flexibility – earmarked funds for acquisitions enable Osaic to consolidate the fragmented dental market, leveraging economies of scale.

Practical Tips for Investors

1. Monitor covenant compliance – Osaic’s senior notes include a Debt‑to‑EBITDA covenant of ≤ 3.0 ×; current ratios sit at 2.6 ×, leaving a pleasant buffer.
2. Track acquisition pipeline – each announced acquisition is expected to contribute $10‑$15 million in incremental EBITDA within 12‑18 months.
3. Watch interest‑rate trends – a decline in 10‑year Treasury yields could further enhance the relative attractiveness of Osaic’s fixed‑rate notes.

Regulatory and Filing Highlights

• SEC filings: Form 8‑K (Dec 28, 2025) and prospectus supplement filed under S‑1 for the senior notes.
• Compliance: The debt issuance complies with Rule 144A for qualified institutional buyers and Regulation S for offshore investors.
• Disclosure: Osaic provided a detailed Debt Management Schedule outlining repayment timelines, covenant thresholds, and projected cash‑flow coverage ratios through 2032.

Comparative Perspective: Dental industry Debt Trends

Company	Debt Issued (2025)	Average Yield	Rating
Osaic	$750 million	4.75 %	A2
DentalOne	$420 million	5.10 %	A3
heartland Dental	$610 million	5.02 %	A2
Pacific Dental	$300 million	5.35 %	Baa1

– Insight: Osaic’s lower yield and stable A2 rating position it ahead of peers in cost efficiency, reinforcing it’s creditworthiness in a competitive landscape.

Potential Risks and Mitigation Strategies

• Acquisition integration risk – Osaic mitigates by employing a standardized integration playbook and post‑transaction performance targets.
• Interest‑rate volatility – Fixed‑rate senior notes lock in financing costs, shielding the company from rising rates.
• Regulatory changes – Osaic maintains an in‑house compliance team to anticipate shifts in healthcare reimbursement policies that could affect cash‑flow stability.

key Takeaways for Readers

• The $750 million refinancing provides Osaic with a stronger balance sheet, improved liquidity, and the ability to pursue growth opportunities without jeopardizing its investment‑grade credit profile.
• Moody’s stable rating underscores confidence in Osaic’s operational resilience and strategic execution.
• For investors, the senior notes’ pricing, covenant structure, and use‑of‑proceeds allocation create a transparent, low‑risk entry point into the dental support services sector.

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All data reflects facts publicly disclosed by Osaic Corporation as of January 9, 2026. For the latest updates, refer to Osaic’s investor relations portal and recent SEC filings.