New Issue: Hub prices downsized $950 million 7 7/8% eight-year notes at par

By Paul A. Harris

Portland, Ore., Sept. 17 - Hub International Ltd. priced a downsized $950 million issue of eight-year senior notes (Caa2) at par to yield 7 7/8% on Tuesday, according to a syndicate source.

The deal was downsized from $1,035,000,000, with $85 million of the proceeds shifted to the concurrent term loan, raising the loan to $1.87 billion from $1,785,000,000.

The yield printed in the middle of the 7¾% to 8% yield talk.

BofA Merrill Lynch is the left bookrunner for the Rule 144A for life notes. Morgan Stanley & Co. LLC, RBC Capital Markets, Macquarie, BMO Securities and UBS Investment Bank are the joint bookrunners.

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

The issuing entity is Hockey Merger Sub 2 Inc., which is to be merged with and into Hub International Ltd., a Chicago-based insurance brokerage.

Issuer:	Hockey Merger Sub 2 Inc. to be merged with and into HUB International Ltd.
Amount:	$950 million, downsized from $1,035,000,000
Maturity:	Oct. 1, 2021
Securities:	Senior notes
Bookrunners:	BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Macquarie Capital (USA) Inc., BMO Capital Markets Corp., UBS Securities LLC
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Spread:	538 bps
First call:	Oct. 1, 2016 at 105.906
Equity clawback:	40% at 107.875 until Oct. 1, 2016
Change-of-control put:	101%
Trade date:	Sept. 17
Settlement date:	Oct. 2
Rating:	Moody's: Caa2
Distribution:	Rule 144A for life and Regulation S
Price talk:	7¾% to 8%
Marketing:	Roadshow

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