HUB lifts U.S. term B to $3.21 billion, cancels Canadian B loan

By Sara Rosenberg

New York, April 19 – HUB International Ltd. upsized its U.S. seven-year covenant-light term loan B to $3.21 billion from $3.05 billion and eliminated plans for a C$200 million seven-year covenant-light term loan B, according to a market source.

Additionally, pricing on the U.S. term loan B was set at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, and the original issue discount was revised to 99.75 from 99.5, the source said.

As before, the U.S. term loan B has a 25 bps step-down at 4.25 times first-lien net leverage, a 0% Libor floor and 101 soft call protection for six months.

The Canadian term loan B had been talked at CDOR plus 350 bps to 375 bps with a 0% floor, a discount of 99.5 and 101 soft call protection for six months.

The company’s $3.7 billion equivalent of senior secured credit facilities (B2/B) also include a $400 million five-year revolver and a C$130 million five-year revolver.

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.

Commitments were scheduled to be due at noon ET on Thursday, 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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