HUB International launches $4.25 billion term B at SOFR plus 425 bps

By Sara Rosenberg

New York, June 5 – HUB International Ltd. held a lender call at 11:30 a.m. ET on Monday to launch a $4.25 billion seven-year term loan B that is talked at SOFR plus 425 basis points with a 25 bps step-down upon an initial public offering, a 0.75% floor and an original issue discount of 98 to 98.5, according to a market source.

The term loan has 101 soft call protection for six months, no CSA and amortization of 1% per annum, the source said.

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

Proceeds will be used with $2.675 billion of other secured debt to refinance existing term loans due 2025 and finance current and future acquisitions under letters of intent.

Commitments and signature pages for cashless rolls are due at 10 a.m. ET on Thursday, the source added.

Hellman & Friedman is the sponsor.

HUB is a Chicago-based insurance brokerage firm.

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