HUB International cuts spread to 350 bps on $1.13 billion term loans

By Paul A. Harris

Portland, Ore., March 28 - Hub International Holdings cut pricing on a $297 million add-on term loan and a repricing of its existing $828 million term loan, according to a market source.

The enlarged $1,125,000,000 term loan due June 13, 2017 is talked at Libor plus 350 basis points, down from 375 bps with no Libor floor and a par offer price, the source said.

In addition, the loan has 101 soft call protection for six months, the source remarked.

Proceeds from the add-on will be used to refinance a $168 million term loan due December 2017, to repay $100 million in borrowings under the U.S. revolver and to repay $25 million of preferred equity owned by legacy third-party shareholders.

The repricing will take the existing term loan down from Libor plus 450 bps with no Libor floor.

In addition, with this transaction the incremental facility will be reset to $125 million.

Commitments are due at 5 p.m. ET on Wednesday, and closing will occur on April 24 upon expiration of the existing 101 soft call protection, the source added.

Morgan Stanley Senior Funding Inc., Bank of America Merrill Lynch and RBC Capital Markets are the lead banks on the deal.

Hub is a Chicago-based insurance company.

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