S&P gives Hub notes B-, B

S&P said it assigned its B- issue-level rating to Hub International Ltd.'s planned $1.9 billion of senior unsecured notes due 2032. The recovery rating is 5, indicating modest recovery (10%-30%; rounded to 10%) of principal in default. The agency also assigned a B issue-level rating to Hub's proposed $1.1 billion of add-on debt with similar terms to its $2.175 billion of senior secured notes due 2030. The recovery rating is 3, indicating modest recovery (50%-70%; rounded to 50%) if Hub defaults.

Hub also wants to reprice its term loan due June 2030, up to $4.86 billion from $4.75 billion. “We expect proceeds to be used to refinance its term loan B-4 due 2029, refinance its senior unsecured notes due 2026, also rated B- with a 5 recovery rating, repay revolver borrowings, finance current and future acquisitions under a letter of intent, redeem existing Hub stock, and pay any associated fees and expenses,” the agency said in a press release.

The outlook is stable.

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