Published on 5/13/2020 in the Prospect News High Yield Daily.
New Issue: HUB International sells $350 million more 7% notes due 2026 at 98.76 to yield 7.259%
By Paul A. Harris
Portland, Ore., May 13 – HUB International Ltd. priced a $350 million add-on to its 7% senior notes due May 1, 2026 (Caa2/CCC+) at 98.76 to yield 7.259% in a Wednesday drive-by, according to market sources.
Morgan Stanley & Co. LLC was the left bookrunner. Joint bookrunners were 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 Macquarie.
The issue price came on top of price talk.
The Chicago-based insurance brokerage plans to use the proceeds, together with cash on hand, to repay debt under its revolving credit facility.
Issuer: | HUB International Ltd.
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Amount: | $350 million
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Maturity: | May 1, 2026
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Security description: | Add-on to 7% senior notes due May 1, 2026
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Left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
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Joint bookrunners: | 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 Macquarie
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Coupon: | 7%
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Price: | 98.76
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Yield to maturity: | 7.259%
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Spread: | 684 bps
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First call: | May 1, 2021 at 103.5
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Trade date: | May 13
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Settlement date: | May 18
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Ratings: | Moody's: Caa2
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| S&P: CCC+
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 98.76
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Marketing: | Drive-by
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Original issue: | $1.32 billion priced in April 2018
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Fungibility: | Rule 144A add-on notes immediately become fungible with original notes; Regulation S add-on notes become fungible following a 40-day cooling period (deal was announced as a non-fungible add-on)
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