HUB International to price $350 million non-fungible tap of 7% notes on Wednesday

By Paul A. Harris

Portland, Ore., May 13 – HUB International Ltd. plans to price a $350 million non-fungible add-on to its 7% senior notes due May 1, 2026 (existing ratings Caa2/CCC+) in a Wednesday drive-by trailing a mid-morning conference call with investors, according to market sources.

Initial price talk is in the 96.5 area, a trader said.

Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver. BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Nomura Securities International Inc., BMO Capital Markets Corp. and MQB are the joint bookrunners.

The Rule 144A and Regulation S for life notes feature a make-whole call at Treasuries plus 50 basis points until May 1, 2021, then become callable at 103.5.

The Chicago-based insurance brokerage plans to use the proceeds, together with cash on hand, to repay debt under its revolving credit facility.

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