Hub gets financing commitment from Morgan Stanley, Merrill for buyout

By Sara Rosenberg

New York, Feb. 26 - Hub International Ltd. has received a debt financing commitment from Morgan Stanley and Merrill Lynch, which will act as joint lead arrangers and joint bookrunners on the deal, to help back its buyout by Apax Partners and Morgan Stanley Principal Investments, according to a company news release.

Under the terms of the transaction, Hub shareholders will receive $40.00 per share in cash. This transaction values Hub at about $1.8 billion, which includes about $1.7 billion of fully diluted equity and about $145 million of debt.

The transaction is expected to be completed toward the end of the second quarter, subject to shareholder approval, Canadian court approval, other regulatory approvals and customary closing conditions. There is no financing condition.

Hub is a Chicago-based insurance broker.

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