Equitable Holdings Inks $500 Million Term Loan, Launches $1.8 Billion Tender Offer for AllianceBernstein Units

Equitable Holdings, Inc. announced two significant financial transactions earlier this week. On February 21, 2025, the company’s subsidiaries executed a 364-day Term Loan Credit Agreement securing a $500 million senior unsecured delayed-draw term loan. The borrowing is structured to finance an upcoming tender offer as well as to cover related fees and expenses. The loan agreement includes customary administrative and financial covenants and is repayable with cash proceeds from a recently announced master transaction agreement involving reinsurance agreements with Reinsurance Group of America, which is expected to close in mid-2025.

In a related development, Equitable Holdings began a cash tender offer on February 24, 2025, to purchase up to 46,000,000 units representing assignments of beneficial ownership in AllianceBernstein Holding L.P. The units are being offered at $38.50 each, reflecting a 7.8% premium over AllianceBernstein Holding’s closing price on February 21, 2025, and potentially achieving an aggregate purchase price of approximately $1.8 billion, net of applicable tax withholding. If the maximum number of units is acquired, Equitable’s economic interest in the operating partnership of AllianceBernstein would increase substantially.

The tender offer, which represents approximately 41.7% of AllianceBernstein Holding’s currently outstanding units, is designed to provide liquidity to unitholders. In addition, Equitable aims to bolster its stake in AllianceBernstein L.P. through the acquisition of these units, thereby strengthening its financial services platform. The offer is open until 5:00 p.m. New York time on March 24, 2025, and may be extended, with any extension to be publicly announced promptly.

Both transactions, governed by standard conditions and subject to compliance with the agreed-upon covenants, underscore Equitable Holdings’ broader strategy to optimize its capital structure and enhance its positioning within the financial services industry. Forward-looking statements in connection with these developments indicate that the company anticipates these moves will support its long-term growth objectives, while noting that various risks and uncertainties could cause actual results to differ materially.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Equitable’s 8K filing here.

About Equitable

Equitable Holdings, Inc, together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy.