S&P assigns HUB International loan B

S&P said it assigned its B issue rating to HUB International Ltd.'s planned $850 million senior secured incremental term loan. The recovery rating is 3, indicating meaningful (50%) recovery in default.

The company’s other ratings, including the CCC+ rating on its $1.67 billion of 7% notes due 2026, are unchanged.

The loan is expected to have identical terms as the company's outstanding term loans, but with higher pricing. Also, the new loan will be SOFR based, while the outstanding loans remain Libor based, the agency said.

HUB is expected to use the proceeds primarily to finance upcoming acquisitions under the letter of intent as and refinance revolver borrowings, $141 million as of the second quarter of 2022.

The outlook is stable.

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