Hub International sets terms on amend-and-extend effort

By Paul A. Harris

Portland, Ore., April 13 - Hub International Ltd. launched an amendment and extension proposal on Friday, according to a market source.

The Chicago-based insurance company is seeking to extend its original term loans by three years, to June 2017. Lenders are offered a 200 basis points increase in coupon, moving the Libor spread to 450 bps. There is $729 million of term loan debt outstanding.

In addition Hub is seeking to extend its incremental term loan by 3.5 years to December 2017 with no change in pricing. There is $195 million of incremental term loan debt outstanding.

Hub is also seeking to extend its U.S. revolving credit facility by three years to June 2016 with a 200 bps increase in pricing, increasing the Libor spread to 450 bps.

The consent fee is 10 bps.

Commitments are due by noon ET on April 20.

Morgan Stanley & Co., RBC Capital Markets and Bank of America Merrill Lynch are leading the deal.

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