S&P gives HUB notes B, CCC+

S&P said it gave debt ratings to HUB International Ltd.'s planned note offerings, consisting of $650 million of senior secured notes maturing 2028 rated B and $550 million of senior unsecured notes maturing 2029 rated CCC+. The recovery rating is 3 for the senior secured notes, indicating an expectation for meaningful (50%) recovery in default. The recovery rating is 6 for the senior unsecured notes, indicating an expectation for negligible (5%) recovery in default.

“The ratings on HUB (including our B issuer rating, B first-lien credit facility debt ratings and CCC+ unsecured debt rating) are unaffected by these new issuances. Our B issuer credit ratings on HUB continue to reflect its fair business risk profile and highly leveraged financial risk profile assessments,” the agency said in a press release.

HUB is expected to use the proceeds to pay a shareholder dividend and fund acquisitions.

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