HUB International prices $850 million term B at SOFR plus 400 bps

By Sara Rosenberg

New York, Oct. 31 – HUB International held a lender call at 10 a.m. ET on Monday to launch an $850 million seven-year incremental senior secured covenant-lite term loan B (B2/B) at talk of SOFR plus 400 basis points with a 25 bps step-down upon an initial public offering, a 0.75% floor and an original issue discount of 95 to 96, according to a market source.

Commitments were due at 3 p.m. ET on Monday, after which the discount firmed at 96, the tight end of talk, the source added.

The incremental term loan has 101 soft call protection for six months, 0 bps CSA and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc., JPMorgan Chase Bank, Barclays, BofA Securities Inc., Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Nomura and BMO Capital Markets are the bookrunners on the deal.

Proceeds will be used to finance current and future acquisitions under letters of intent, refinance revolving credit facility borrowings, and pay fees, expenses and original issue discount associated with the transaction.

Closing is expected on Nov. 10.

HUB is a Chicago-based insurance brokerage.

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