Arthur J. Gallagher enters into $1.2 billion five-year credit facility

By Wendy Van Sickle

Columbus, Ohio, June 23 – Arthur J. Gallagher & Co. entered into a $1.2 billion five-year revolving credit facility with Bank of America, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

There is a $75 million subfacility for letters of credit. Borrowings are available in pounds sterling, Canadian dollars, Australian dollars, New Zealand dollars, euros, yen and other currencies agreed to by the lenders.

The company may request to increase in commitments to up to $1.7 billion.

Borrowings bear interest at SOFR plus a margin ranging from 77.5 basis points to 137.5 bps, and the commitment fee ranges from 10 bps to 25 bps, both depending on debt ratings of the company.

The maturity date is June 22, 2028.

BofA Securities, Inc., BMO Capital Markets Corp., Barclays Bank plc, Citibank, NA and JPMorgan Chase Bank, NA are the lead arrangers, bookrunners and syndication agents.

Capital One, NA, HSBC Bank USA, NA and Lloyds Bank plc are the co-documentation agents.

Proceeds may be used for working capital and general corporate purposes.

Rolling Meadows, Ill.-based Arthur J. Gallagher is an insurance brokerage and risk management services company.

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