By Paul A. Harris
Portland, Ore., Jan. 27 – Hub International Ltd. priced a $300 million issue of five-year senior second-lien secured notes (B3/CCC+) at par to yield 9¾% on Wednesday, according to an informed source.
The yield printed on top of yield talk.
Morgan Stanley & Co. LLC was the bookrunner for the quick-to-market deal.
The Chicago-based insurance brokerage plans to use the proceeds for general corporate purposes, including future acquisitions, and to pay down all revolving credit loans under its senior secured credit facilities.
| Issuer: | Hub International Ltd.
|
| Amount: | $300 million
|
| Maturity: | Feb. 15, 2021
|
| Securities: | Senior second-lien secured notes
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 9¾%
|
| Price: | Par
|
| Yield: | 9¾%
|
| Spread: | 778 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2017, then callable at 103
|
| Trade date: | Jan. 27
|
| Settlement date: | Feb. 3
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¾% area
|
| Marketing: | Quick to market
|
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