Aon gets $400 million five-year facility at Libor plus 87.5-140 bps

By Susanna Moon and Marisa Wong

Madison, Wis., March 21 - Aon Corp. entered into a $400 million revolving credit facility on March 20, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The revolving facility matures on March 20, 2017.

Interest is equal to Libor plus 87.5 basis points to 140 bps. The applicable margin varies with the company's debt ratings.

The agreement contains covenants that require the ratio of consolidated adjusted EBITDA to consolidated interest expense to be at least 4.00 to 1.00. The facility also requires that the ratio of consolidated funded debt to consolidated adjusted EBITDA be no more than the lower of (a) 3.25 to 1.00 and (b) the greater of (i) 3.00 to 1.00 and (ii) the lowest ratio of consolidated funded debt to consolidated adjusted EBITDA set forth in certain of the company's other credit facilities.

According to the filing, Aon also terminated its $400 million three-year credit agreement dated Dec. 4, 2009 on the closing date of the new facility.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner and Smith Inc. are the joint lead arrangers and joint bookrunners for the five-year facility. Citibank, NA is the administrative agent. JPMorgan Chase Bank, NA and Bank of America, NA are the syndication agents, and Royal Bank of Scotland plc and Wells Fargo Bank, NA are documentation agents.

The risk management, insurance and consulting company is based in Chicago.

© 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.