By Paul A. Harris
Portland, Ore., April 18 – Hub International Ltd. priced a $1.32 billion issue of eight-year senior notes (Caa2/CCC+) at par to yield 7% on Wednesday, according to market sources.
The yield printed tighter than the 7¼% to 7½% yield talk.
Order books were said to be five times oversubscribed, a trader said.
The Wednesday trade came as an acceleration of previously announced timing that had the deal remaining in the market until Thursday.
BofA Merrill Lynch was the left bookrunner. Morgan Stanley & Co. LLC, Barclays, Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, Macquarie Capital, BMO Securities and Nomura were the joint bookrunners.
The Chicago-based insurance brokerage plans to use the proceeds, together with $3.05 billion and C$200 million of term loans, to refinance its capital structure.
| Issuer: | Hub International Ltd.
|
| Amount: | $1.32 billion
|
| Maturity: | May 1, 2026
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Morgan Stanley & Co. LLC, Barclays, Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, Macquarie Capital, BMO Securities, Nomura
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 415 bps
|
| Call protection: | Three years
|
| Trade date: | April 18
|
| Settlement date: | April 25
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 7¼% to 7½%
|
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