By Paul A. Harris
St. Louis, June 8 - Hub International Ltd. priced a downsized $700 million two-part notes transaction on Friday, according to a market source.
The Chicago-based insurance broker priced a $305 million tranche of 7.5-year senior fixed-rate notes (B3/CCC+) at par to yield 9%. The yield was printed on top of price talk that had been increased from earlier talk of 8½% to 8¾%.
Hub also priced $395 million tranche of eight-year senior subordinated notes (Caa1/CCC+) at par to yield 10¼%, on top of price talk that had been increased from earlier talk of 9¾% to 10%.
The issuer downsized the overall offering from $790 million, abandoning a proposed tranche of 7.5-year senior floating-rate notes and shifting $90 million of its LBO financing to the bank loan market on Thursday, according to market sources.
Morgan Stanley and Merrill Lynch & Co. were joint bookrunners for the Rule 144A for life notes transaction.
Proceeds will be used to help fund the LBO of the company by Apax Partners and Morgan Stanley Principal Investments.
Issuer: Hub International Ltd.
| Amount: | $700 million (decreased from $790 million)
|
| Bookrunners: | Morgan Stanley, Merrill Lynch & Co.
|
| Trade date: | June 8
|
| Distribution: | Rule 144A for life
|
|
|
| Senior notes
|
| Amount: | $305 million
|
| Maturity: | Dec. 15, 2014
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 385 bps
|
| Call protection: | Four years
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: CCC+
|
| Price talk: | 9% (increased from 8½% to 8¾%)
|
|
|
| Senior subordinated notes
|
| Amount: | $395 million
|
| Maturity: | June 15, 2015
|
| Coupon: | 10¼%
|
| Price: | Par
|
| Yield: | 10¼%
|
| Spread: | 510 bps
|
| Call protection: | Four years
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Price talk: | 10¼% (increased from 9¾% to 10%)
|
|
|
© 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.
