By Paul A. Harris
Portland, Ore., Dec. 3 – Hub International Ltd. priced a $280 add-on to its 7 7/8% senior notes due Oct. 1, 2021 (Caa1/CCC+/) at 101.5 to yield 7.494% on Wednesday, according to an informed source.
The reoffer price came in the middle of the 101 to 102 price talk.
Morgan Stanley & Co. LLC was the bookrunner.
The Chicago-based insurance brokerage plans to use the proceeds for general corporate purposes, including funding future acquisitions, and to pay down revolver debt drawn to fund prior acquisitions.
| Issuer: | Hub International Ltd.
|
| Face amount: | $280 million
|
| Proceeds: | $284 million
|
| Maturity: | Oct. 1, 2021
|
| Security description: | Add-on to 7 7/8% senior notes due Oct. 1, 2021
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 7 7/8%
|
| Price: | 101.5
|
| Yield to worst: | 7.494%
|
| Spread to maturity: | 561 bps
|
| First call: | Oct. 1, 2016 at 105.906
|
| Equity clawback: | 40% at 107.875 until Oct. 1, 2016
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 8 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 101 to 102
|
| Marketing: | Quick to market
|
| Original issue: | $950 million priced at par in September 2013
|
| Fungibility: | Rule 144A add-on notes will immediately become fungible with the original notes; Regulation S notes will become fungible with the original notes following a 40-day cooling period
|
| Total issue size: | $1.23 billion
|
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