Arthur J. Gallagher restates loan, ups commitments to $1.2 billion

By Marisa Wong

Morgantown, W.Va., June 7 – Arthur J. Gallagher & Co. amended and restated its credit agreement dated April 8, 2016 with Bank of Montreal as administrative agent to extend the expiration date and increase the revolving credit commitment, according to an 8-K filing with the Securities and Exchange Commission.

Gallagher extended the expiration date to June 7, 2024 from April 8, 2021 and increased the revolving credit commitment to $1.2 billion from $800 million.

The revolving credit commitment includes $75 million that may be used for standby or commercial letters of credit and up to $75 million for swingline loans.

Gallagher may from time to time request, subject to some conditions, an increase in the revolving credit commitment up to $1.7 billion.

Loans bear interest at Libor plus a margin of 82.5 basis points to 140 bps, depending on either Gallagher’s public debt rating or, if Gallagher does not maintain a public debt rating, its financial leverage ratio. The applicable margin is initially 120 bps.

The facility fee will be between 12.5 bps and 25 bps, also based on ratings or the leverage ratio, and is initially 20 bps.

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

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

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