New Issue: HUB International sells $350 million more 7% notes due 2026 at 98.76 to yield 7.259%

By Paul A. Harris

Portland, Ore., May 13 – HUB International Ltd. priced a $350 million add-on to its 7% senior notes due May 1, 2026 (Caa2/CCC+) at 98.76 to yield 7.259% in a Wednesday drive-by, according to market sources.

Morgan Stanley & Co. LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Nomura Securities International Inc., BMO Capital Markets Corp. and Macquarie.

The issue price came on top of price talk.

The Chicago-based insurance brokerage plans to use the proceeds, together with cash on hand, to repay debt under its revolving credit facility.

Issuer:	HUB International Ltd.
Amount:	$350 million
Maturity:	May 1, 2026
Security description:	Add-on to 7% senior notes due May 1, 2026
Left bookrunner:	Morgan Stanley & Co. LLC (bill and deliver)
Joint bookrunners:	BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Nomura Securities International Inc., BMO Capital Markets Corp. and Macquarie
Coupon:	7%
Price:	98.76
Yield to maturity:	7.259%
Spread:	684 bps
First call:	May 1, 2021 at 103.5
Trade date:	May 13
Settlement date:	May 18
Ratings:	Moody's: Caa2
	S&P: CCC+
Distribution:	Rule 144A and Regulation S for life
Price talk:	98.76
Marketing:	Drive-by
Original issue:	$1.32 billion priced in April 2018
Fungibility:	Rule 144A add-on notes immediately become fungible with original notes; Regulation S add-on notes become fungible following a 40-day cooling period (deal was announced as a non-fungible add-on)

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