HUB International lifts term loan to $1.75 billion, tightens OID

By Sara Rosenberg

New York, Nov. 18 – HUB International Ltd. upsized its fungible senior secured add-on covenant-lite term loan B due April 25, 2025 to $1.75 billion from $1.1 billion and tightened the original issue discount to 99.75 from 99.28, according to a market source.

Pricing on the add-on term loan is Libor plus 325 basis points with a 0.75% Libor floor, in line with existing term loan pricing.

The add-on term loan has 101 soft call protection for six months and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc., BofA Securities Inc., JPMorgan Chase Bank, Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Nomura and BMO Capital Markets are the joint lead arrangers and bookrunners on the deal. Morgan Stanley is the administrative agent.

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

Proceeds will be used with $550 million of senior notes to fund a distribution to shareholders and expected fourth-quarter acquisitions, and to pay related fees, expenses and original issue discount.

Due to the term loan upsizing, the company canceled plans for a $650 million senior secured notes offering.

HUB is a Chicago-based insurance brokerage.

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