HUB International revises issue price on $350 million term B to par

By Sara Rosenberg

New York, Sept. 18 – HUB International Ltd. tightened the issue price on its fungible $350 million add-on term loan B (B1/B) due Oct. 2, 2020 to par from 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.

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 because leverage will be above 4 times upon completion of the add-on.

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

Recommitments were scheduled to be due at 5 p.m. ET on Monday, the source said.

Allocations are targeted for Tuesday.

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

Closing is expected during the week of Sept. 25, the source added.

HUB is a Chicago-based insurance brokerage.

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