HUB International lifts term loan B to $4.75 billion, updates pricing

By Sara Rosenberg

New York, June 8 – HUB International Ltd. upsized its seven-year term loan B (B2/B) to $4.75 billion from $4.25 billion and downsized its senior secured notes offering to $2.175 billion from $2.675 billion, according to a market source.

Pricing on the term loan remained at SOFR plus 425 basis points with a 25 bps step-down upon an initial public offering and a 0.75% floor, but a 25 bps step-down was added at B2/B corporate credit ratings, the source said.

Also, the original issue discount on the term loan was tightened to 99 from talk in the range of 98 to 98.5, the source said.

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

Currently, the company’s corporate credit ratings are B3/B.

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.

Recommitments were scheduled to be due at 1:30 p.m. ET on Thursday, the source added.

Proceeds from the term loan and notes will be used to refinance existing term loans due 2025 and finance current and future acquisitions under letters of intent.

Hellman & Friedman is the sponsor.

HUB is a Chicago-based insurance brokerage firm.

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