HUB International launches $350 million add-on term B at 99.75 OID

By Sara Rosenberg

New York, Sept. 13 – HUB International Ltd. launched on Wednesday its fungible $350 million add-on term loan B due Oct. 2, 2020 with original issue discount talk of 99.75, according to a market source.

Pricing on the add-on term loan matches existing term loan B pricing, which is Libor plus 325 basis points at more than 4 times net first-lien leverage and Libor plus 300 bps at less than or equal to 4 times net first-lien leverage and a 1% Libor floor, the source said.

Currently, the company is at the Libor plus 300 bps rate on its term loan B, but it will step-up to Libor plus 325 bps since leverage will be above 4 times upon completion of the add-on.

Nomura and Macquarie Capital (USA) Inc. are the arrangers on the deal.

Commitments are due at noon ET on Monday, the source added.

Proceeds will be used to repay revolving credit facility borrowings and to fund cash to the balance sheet.

HUB is a Chicago-based insurance brokerage.

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