Published on 9/17/2013 in the Prospect News High Yield Daily.
New Issue: Hub prices downsized $950 million 7 7/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., Sept. 17 - Hub International Ltd. priced a downsized $950 million issue of eight-year senior notes (Caa2) at par to yield 7 7/8% on Tuesday, according to a syndicate source.
The deal was downsized from $1,035,000,000, with $85 million of the proceeds shifted to the concurrent term loan, raising the loan to $1.87 billion from $1,785,000,000.
The yield printed in the middle of the 7¾% to 8% yield talk.
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.
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.
Issuer: | Hockey Merger Sub 2 Inc. to be merged with and into HUB International Ltd.
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Amount: | $950 million, downsized from $1,035,000,000
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Maturity: | Oct. 1, 2021
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Securities: | Senior notes
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Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Macquarie Capital (USA) Inc., BMO Capital Markets Corp., UBS Securities LLC
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Coupon: | 7 7/8%
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Price: | Par
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Yield: | 7 7/8%
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Spread: | 538 bps
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First call: | Oct. 1, 2016 at 105.906
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Equity clawback: | 40% at 107.875 until Oct. 1, 2016
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Change-of-control put: | 101%
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Trade date: | Sept. 17
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Settlement date: | Oct. 2
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Rating: | Moody's: Caa2
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Distribution: | Rule 144A for life and Regulation S
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Price talk: | 7¾% to 8%
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Marketing: | Roadshow
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