HUB trims spread on $1.5 billion term loan B to Libor plus 325 bps

By Sara Rosenberg

New York, Jan. 15 – HUB International Ltd. lowered pricing on its $1.506 billion covenant-lite first-lien term loan B (B2/B) due April 2025 to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

As before, the term loan has a 0.75% Libor floor, a par issue price and 101 soft call protection for six months.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., Barclays, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Macquarie Capital (USA) Inc. and Nomura are the lead arrangers on the deal.

Commitments continued to be due at noon ET on Friday, the source added.

Proceeds will be used to reprice existing 2019 incremental term loans down from Libor plus 400 bps with a 1% Libor floor and pay related fees and expenses.

Closing is expected during the week of Jan. 18.

HUB is a Chicago-based insurance brokerage.

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