Hub International launches $215 million add-on term loan due 2017

By Sara Rosenberg

New York, May 15 - Hub International Holdings launched via Intralinks on Tuesday a $215 million add-on term loan due June 14, 2017 that is priced at Libor plus 450 basis points with no Libor floor and offered at an original issue discount of 98½ to 99, according to a market source.

Morgan Stanley Senior Funding Inc. is the lead arranger on the deal and a bookrunner with Bank of America Merrill Lynch and RBC Capital Markets LLC.

The loan is fungible with the existing roughly $544 million extended term loan B due June 14, 2017 that has the same spread as the add-on.

Amortization is 1% per annum.

There is 101 soft call protection through April 24, 2013 on the add-on and the existing term loan B, the source said.

Proceeds will be used to refinance non-extended term loan debt and incremental term loans due June 2014.

Commitments are due at 4 p.m. ET on Wednesday, the source added.

Hub is a Chicago-based insurance company.

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