Hub International plans $280 million tap of 7 7/8% notes due 2021 in Wednesday drive-by

By Paul A. Harris

Portland, Ore., Dec. 3 – Hub International Ltd. plans to price a $280 million add-on to its 7 7/8% senior notes due Oct. 1, 2021 (existing ratings Caa2/CCC+) on Wednesday trailing a mid-morning investor conference call, according to an informed source.

Morgan Stanley & Co. LLC is the bookrunner for the Rule 144A and Regulation S for life offering.

The notes become callable on Oct. 1, 2017 at 103.938 and feature a 40% equity clawback at 107.875 until to Oct. 1, 2016.

The Chicago-based insurance brokerage plans to use the proceeds for general corporate purposes, including funding future acquisitions, and to pay down revolver debt drawn to fund prior acquisitions.

The original $950 million issue priced at par in September 2013.

The Rule 144A add-on notes will immediately become fungible with the original notes. The Regulation S notes will become fungible with the original notes following a 40-day cooling period.

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