By Wendy Van Sickle
Columbus, Ohio, Nov. 2 – Arthur J. Gallagher & Co. priced $750 million of senior notes in two tranches (Baa2/BBB/BBB) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
There was $400 million of 2.4% 10-year notes at a spread of 90 basis points over Treasuries. These notes priced at 99.568 to yield 2.449%.
The deal also included $350 million of 3.05% 30-year notes at a spread Treasuries plus 115 bps. These notes priced at 98.966 to yield 3.103%.
BofA Securities, Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., Barclays and Citigroup Global Markets Inc. are the bookrunners.
Proceeds will be used for general corporate purposes, which may include funding a portion of Gallagher’s planned acquisition of the treaty reinsurance brokerage operations of Willis Towers Watson plc.
Rolling Meadows, Ill.-based Gallagher is an insurance brokerage and risk management services company.
| Issuer: | Arthur J. Gallagher & Co.
|
| Amount: | $750 million
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, BMO Capital Markets Corp., Barclays and Citigroup Global Markets Inc.
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 9
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 2031 notes
|
| Amount: | $400 million
|
| Maturity: | Nov. 9, 2031
|
| Coupon: | 2.4%
|
| Price: | 99.568
|
| Yield: | 2.449%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Make-whole call at Treasuries plus 15 bps until Aug. 9, 2031, then a par call
|
| Special redemption: | At 101 upon notice of WTW transaction termination event
|
| Cusip: | 04316JAA7
|
|
|
| 2052 notes
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| Amount: | $350 million
|
| Maturity: | March 9, 2052
|
| Coupon: | 3.05%
|
| Price: | 98.966
|
| Yield: | 3.103%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Sept. 9, 2051, then a par call
|
| Cusip: | 04316JAB5
|
|
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