HUB International places $250 million incremental term loan B

By Sara Rosenberg

New York, Sept. 25 – HUB International Ltd. privately placed a fungible $250 million incremental covenant-lite term loan B (B2/B) due April 25, 2025, according to a market source.

Pricing on the term loan is Libor plus 400 basis points with a 1% Libor floor, the source said.

Amortization on the term loan is 1% per annum.

Morgan Stanley Senior Funding Inc. acted as the lead arranger on the deal.

Proceeds will be used with existing cash on the balance sheet, to make a $400 million distribution to shareholders, to redeem equity of the parent company and for ongoing working capital and other general corporate purposes.

Closing is expected later in the week of Sept. 28, the source added.

HUB is a Chicago-based insurance brokerage.

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