JPMorgan Chase Leads $1.35B Brown & Brown Facility
Brown & Brown announced its entry into a five-year $1.35 billion unsecured credit facility. The credit agreement provides for a revolving credit facility in an aggregate amount up to $800 million and term loans in an aggregate amount of $550 million.
The facility is funded by a syndicate of financial institutions led by JPMorgan Chase Bank, as administrative agent and bookrunner. The other bookrunners on the facility are Bank of America, Royal Bank of Canada and SunTrust Bank. U.S. Bank is serving as a lead arranger on the facility. The company was advised by Evercore Partners.
Funds will be drawn to finance the Wright Insurance Group acquisition, refinance certain existing indebtedness of the Company and for general corporate purposes, including the financing of future acquisitions. This facility also includes various covenants, limitations and events of default customary for similar facilities for similarly rated borrowers.
EVP and CFO R. Andrew Watts said, “We are very pleased to have secured this new credit facility, and we believe that its commercial and financial terms will help position us well for funding our acquisitions and future growth. We believe the significant level of interest to participate in the facility demonstrates the support we have from our banking partners and our strong financial position.”
Brown & Brown offers insurance and reinsurance products and services, as well as risk management, third-party administration, managed healthcare, and Medicare set-aside services and programs.