HUB launches $1.27 billion term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, Oct. 10 – HUB International Ltd. launched on Thursday its non-fungible $1.27 billion incremental senior secured covenant-lite term loan B due April 2025 with price talk of Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

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

Commitments are due at 5 p.m. ET on Oct. 17, the source added.

Proceeds will be used to repay drawings on the revolving credit facility, fund acquisitions under letters of intent and fund a distribution to shareholders.

HUB is a Chicago-based insurance brokerage.

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