Hub gets no more tenders for 8 1/8% notes due 2018 since consent date

By Susanna Moon

Chicago, Oct. 7 - Hub International Ltd. said it completed the tender offer for its outstanding $740 million principal amount of 8 1/8% senior notes due 2018 after having received no more tenders after the consent date.

The offer ended at 11:59 p.m. ET on Oct. 4. The offer began on Sept. 9.

As noted before, Hub received tenders for $739.75 million principal amount, or about 99.97%, of the notes by 5 p.m. ET on Sept. 20, the consent date.

Hub entered into a supplemental indenture to the notes, and the amendments were to become operative when Hub purchased a majority of the outstanding notes on Oct. 2, according to a previous company press release.

Hub solicited consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default provisions.

As previously announced, the total purchase price was $1,117.18 for each $1,000 principal amount of notes tendered by the consent date.

The total payment included a consent payment of $30.00 per $1,000 principal amount.

Those who tendered after the consent date would have received the total payment less the consent fee.

The company also paid accrued interest to the settlement date.

The offer was made by Hub in connection with the planned acquisition of the company by affiliates of Hellman & Friedman Capital Partners VII, LP.

The tender offer was subject to the merger condition, the financing condition and the supplemental indenture condition.

Hub priced a downsized $950 million issue of eight-year senior notes at par to yield 7 7/8% on Sept. 17, as previously reported by Prospect News.

Global Bondholder Services Corp. (866 470-4500 or collect 212 430-3774) is the depositary and information agent. BofA Merrill Lynch (888 292-0070 or collect 980 387-3907) and Morgan Stanley (800 624-1808 or collect 212 761-1057) are the dealer managers.

Hub is a Chicago-based insurance brokerage providing property and casualty, life and health, employee benefits, investment and risk management products and services.

© 2015 Prospect News.
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