Aon signs new $1 billion revolver; amends, extends $1 billion revolver

By William Gullotti

Buffalo, N.Y., Oct. 24 – Aon plc and two groups of its subsidiaries conducted facility transactions on Oct. 19 totaling $2 billion, each with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

New revolver

Aon and subsidiaries Aon Corp., Aon Global Holdings plc, and Aon Global Ltd. entered into a $1 billion five-year unsecured revolver that listed Aon North America, Inc. as guarantor, which replaced their previous $750 million revolving facility scheduled to mature on Oct. 19, 2024.

The new revolver matures Oct. 19, 2028 and which includes optional one-year extensions, which are subject to certain conditions and lender consent.

Borrowings will bear currency-appropriate interest at SOFR, Sonia or Euribor plus a margin ranging from 80.5 basis points to 132.5 bps, with the margin determined by the parent company’s long-term senior unsecured debt rating.

There is also a facility fee that ranges from 7 bps to 17.5 bps, based on the same rating.

Aon must maintain a ratio of consolidated adjusted EBITDA to consolidated interest expense of no less than 4.0 to 1.0 and a ratio of consolidated funded debt to consolidated adjusted EBITDA of no more than 3.25 to 1.00, subject to certain exceptions.

Citibank is also a joint lead arranger and joint bookrunner for the facility with Morgan Stanley Senior Funding, Inc. and HSBC Securities (USA) Inc.

Morgan Stanley Senior Funding is also acting as a syndication agent with HSBC Bank USA, NA.

The terminated facility, signed Oct. 20, 2017, also had Citibank as administrative agent.

Amended revolver

Aon and subsidiary Aon UK Ltd., along with the borrowing subsidiaries from the new revolver, amended and extended their existing $1 billion revolver, dated Sept. 28, 2021.

The amendment added Aon North America as guarantor for the revolver and extended the facility termination date to Sept. 28, 2027 from Sept. 28, 2026.

Additionally, the amendments adjusted the interest margins and facility fee to align with the new facility.

The lending syndicate and lender roles for the amended facility are identical to the newly-signed revolver.

Aon is a London-based provider of risk management, insurance and reinsurance brokerage and also human resources solutions and outsourcing services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.