Banks Price $1.4 Billion of Leveraged Loans for Janney’s Buyout

A $1.4 billion leveraged-loan package priced Wednesday to help fund KKR & Co.’s buyout of money manager Janney Montgomery Scott, after terms on the deal were tightened.

Margin for the two-tranche deal is 3.25 percentage points over the Secured Overnight Financing Rate, issued at 99.5 cents on the dollar, according to a person familiar with the matter who asked not to be identified because the information is private. The margin can be reduced as much as a 0.75 percentage point if certain conditions are met. Also, investor-friendly protections were added.

The transaction emerged before Labor Day, making ...