HUB International launches $375 million term loan B at 99.5-99.75 OID

By Sara Rosenberg

New York, March 7 – HUB International Ltd. launched on Tuesday its fungible $375 million incremental covenant-light first-lien term loan B due Oct. 2, 2020 with original issue discount talk of 99.5 to 99.75, according to a market source.

Pricing on the incremental loan is Libor plus 325 basis points with a step-down to Libor plus 300 bps when consolidated first-lien net leverage is 4 times and a 1% Libor floor, the source said.

The incremental term loan has 101 soft call protection for six months and amortization of 1% per annum.

Morgan Stanley Senior Funding Inc., RBC Capital Markets, Macquarie Capital (USA) Inc., Bank of America Merrill Lynch and BMO Capital Markets are joint lead arrangers and bookrunners on the deal.

Commitments are due on Thursday, the source added.

Proceeds will be used to repay $60 million in borrowings under the company’s revolving credit facility and to refinance $300 million in existing 9¼% second-lien notes due 2021.

HUB is a Chicago-based insurance brokerage.

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