Moody's rates Hub loans B1, notes Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Hub International Ltd.

Moody's also assigned B1 ratings to the company's $225 million five-year senior secured revolving credit facility and $1,785,000,000 seven-year senior secured term loan and a Caa2 rating to the $1,035,000,000 eight-year senior unsecured notes Caa2.

The debt is being issued by Hub to help fund a leveraged buyout of the company by funds advised by Hellman & Friedman LLC.

The proposed buyout, which gives Hub an enterprise value of approximately $4.3 billion, is subject to customary closing conditions and regulatory approvals, and is expected to close by early October.

The outlook for Hub is stable.

Moody's said Hub's ratings reflect its solid market position in North American insurance brokerage, good diversification across products and geographic areas, and strong operating margins.

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