Hub International talks $790 million three-part note offering

By Paul A. Harris

St. Louis, June 6 - Hub International Ltd. set price talk for its $790 million three-part note offering on Wednesday, according to market sources.

The Chicago-based insurance broker is in the market with two tranches of seven-year senior notes (B3/CCC+). The floating-rate notes, which come with two years of call protection, are talked at a 350 to 375 basis point spread to Libor. The fixed-rate notes are talked at 8½% to 8¾%.

Hub also intends to place a tranche of eight-year senior subordinated notes (Caa1/CCC+), which it has talked at 9¾% to 10%. The subordinated notes come with four years of call protection.

Tranche sizes remain to be determined.

The deal is expected to price on Friday.

Morgan Stanley and Merrill Lynch & Co. are joint bookrunners for the Rule 144A for life notes.

Proceeds will be used to help fund the leveraged buyout of the company by Apax Partners and Morgan Stanley Principal Investments.

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