HUB lifts term B to $1.87 billion, sets spread at Libor plus 375 bps

By Sara Rosenberg

New York, Sept. 16 - HUB International Ltd. increased the size of its seven-year term loan B to $1.87 billion from $1,785,000,000 and firmed pricing at Libor plus 375 basis points, the tight end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, the original issue discount on the B loan was tightened to 99½ from 99, the source said.

As before, the term B has a 1% Libor floor and 101 soft call protection for six months.

The company's now $2,145,000,000 credit facility (B1), up from $2.06 billion, also includes a $225 million five-year revolver and a C$50 million five-year revolver.

Commitments are due at noon ET on Tuesday, the source continued.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and RBC Capital Markets are the joint lead arrangers on the deal and are joint bookrunners with BMO Capital Markets, Macquarie Capital and UBS Securities LLC.

Proceeds will be used to help fund the buyout of the company by Hellman & Friedman LLC and to refinance existing debt.

Other funds for the transaction will come from $950 million of senior notes that was downsized from $1,035,000,000 due to the term loan B upsizing, the source added.

HUB is a Chicago-based insurance brokerage.

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