New Issue: Hub International sells upsized $740 million six-year notes at par to yield 8 1/8%

By Paul A. Harris

Portland, Ore., Sept. 7 - HUB International Ltd. priced an upsized $740 million issue of six-year senior notes (Caa2/CCC+/) at par to yield 8 1/8% on Friday, according to a syndicate source.

The yield printed at the tight end of yield talk set in the 8¼% area.

The deal's first call premium was reduced to par plus 50% of the coupon from 75% of the coupon. The two-year length of call protection remained unchanged.

Morgan Stanley & Co. LLC, Bank of America Merrill Lynch and RBC Capital Markets LLC were the joint bookrunners for the issue, which was upsized by $10 million.

The Chicago-based insurance company plans to use the proceeds to repurchase its existing senior notes and subordinated notes and for general corporate purposes. Proceeds from the upsizing will be used for general corporate purposes.

Issuer:	HUB International Ltd.
Amount:	$740 million, increased from $730 million
Maturity:	Oct. 15, 2018
Securities:	Senior notes
Bookrunners:	Morgan Stanley & Co. LLC, Bank of America Merrill Lynch, RBC Capital Markets LLC
Co-managers:	CIBC World Markets Corp., BMO Capital Markets Corp.
Coupon:	8 1/8%
Price:	Par
Yield:	8 1/8%
Spread:	725 bps
Call features:	Make-whole call at Treasuries plus 50 bps until to Oct. 15, 2014, then callable at 104.063, 102.031, par on and after Oct. 15, 2016
Equity clawback:	40% at 108.125 until Oct. 15, 2014
Trade date:	Sept. 7
Settlement date:	Sept. 18
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC+
Distribution:	Rule 144A for life
Price talk:	8¼% area
Marketing:	Roadshow

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