HUB finalizes $1.27 billion term loan at Libor plus 400 bps

By Sara Rosenberg

New York, Oct. 18 – HUB International Ltd. set pricing on its non-fungible $1.27 billion incremental senior secured covenant-lite term loan B (B2/B) due April 2025 at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, the Libor floor on the term loan was increased to 1% from 0% and the original issue discount widened to 98.5 from 99, the source said.

In addition, the MFN was changed to 50 bps for 18 months from 75 bps for 12 months.

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.

Recommitments were scheduled to be due at 10 a.m. ET on Friday, 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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