HUB International launches $3.7 billion equivalent credit facilities

By Sara Rosenberg

New York, April 16 – HUB International Ltd. held a lender call at 2 p.m. ET on Monday to launch $3.7 billion equivalent of senior secured credit facilities, according to a market source.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch, Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc. and Nomura Securities International Inc. are the joint lead arrangers and bookrunners on the deal.

The facilities consist of a $400 million five-year revolver, a C$130 million five-year revolver, a $3.05 billion seven-year covenant-light term loan B and a C$200 million seven-year covenant-light term loan B, the source said.

Price talk on the U.S. term loan B is Libor plus 300 basis points to 325 bps with a 25 bps step-down at 4.25 times first-lien net leverage, a 0% Libor floor and an original issue discount of 99.5, and talk on the Canadian term loan B is CDOR plus 350 bps to 375 bps with a 0% floor and a discount of 99.5, the source continued.

Both term loans have 101 soft call protection for six months and amortization of 1% per annum.

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

Proceeds will be used to repay existing revolver and term loan B borrowings, senior unsecured OpCo notes and senior contingent cash pay notes.

HUB is a Chicago-based insurance brokerage.

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