Morgan Stanley, Others Arrange Hub International Term Loan
Hub International Limited announced that it completed the funding of a $1,125 million senior secured term loan due June 13, 2017. The term loan was priced at LIBOR plus 350 basis points with no floor and was issued at par. In connection with this transaction, HUB entered into an amendment to its existing senior secured credit agreement.
The joint bookrunners and joint lead arrangers for the term loan were Morgan Stanley Senior Funding, Merrill Lynch and RBC Capital Markets.
Proceeds of the term loan will be used to refinance Hub’s outstanding extended term loans and incremental term loan due June 2017 and December 2017, respectively, as well as to repay outstanding borrowings under its revolving credit facility and redeem preferred equity owned by legacy third party shareholders. The company’s obligations in respect to the term loan will be guaranteed by all direct and indirect domestic subsidiaries of HUB.
Chicago, IL-based Hub International is a global insurance brokerage that provides a broad array of property and casualty, life and health, employee benefits, investment and risk management products and services through offices located in the U.S., Canada, Puerto Rico and Brazil.