S&P rates HUB loan B, notes CCC+

S&P said it affirmed the B long-term issuer credit rating on HUB International Ltd.

The outlook is stable.

The agency also said it assigned a B rating and 3 recovery rating to the company's proposed senior secured debt, which includes a new $3.05 billion term loan B due in 2025, C$200 million term loan B due in 2025, $400 million revolver due in 2023 and C$130 million revolver due in 2023.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P also said it assigned a CCC+ rating and 6 recovery rating to the company's proposed senior unsecured debt, which includes new $1.32 billion senior unsecured notes due 2026. The 6 recovery indicates 0 to 10% expected default recovery.

The agency also said it affirmed all of the debt ratings, which will be discontinued when these issues are retired at the close of the transaction.

The ratings reflect HUB's financial leverage remaining roughly flat and within expectations on a run-rate basis following the proposed transaction, S&P said.

The proceeds will be used to refinance the company's entire capital structure and pay related fees, expenses and accrued interest, the agency said.

The refinancing will provide certain credit enhancements in extending maturities and likely reducing cost of capital, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.