Hub trims eight-year notes to $950 million, sets talk at 7¾%-8%

By Paul A. Harris

Portland, Ore., Sept. 16 - Hub International Ltd. downsized its offering of eight-year senior notes to $950 million from $1,035,000,000 on Monday, shifting $85 million of proceeds to its term loan, raising the loan to $1.87 billion from $1,785,000,000, according to a market source.

The notes were also talked on Monday to yield 7¾% to 8%.

Books close on the bond deal at 11 a.m. ET on Tuesday, and the pricing is expected thereafter.

BofA Merrill Lynch is the left bookrunner for the Rule 144A for life notes. Morgan Stanley & Co. LLC, RBC Capital Markets, Macquarie, BMO Securities and UBS Investment Bank are the joint bookrunners.

The notes come with three years of call protection and feature a three-year 40% equity clawback and a 101% poison put.

Proceeds will be used to help fund the buyout of the company by Hellman & Friedman LLC.

The issuing entity is Hockey Merger Sub 2 Inc., which is to be merged with and into Hub International Ltd., a Chicago-based insurance brokerage.

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