Aon enters into $900 million five-year credit agreement via Citibank

By Tali Rackner

Norfolk, Va., Feb. 4 – Aon plc, Aon Corp. and Aon UK Ltd. entered into a $900 million five-year credit agreement on Monday with Citibank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings may be designated in dollars, pounds sterling or euros and currently bear interest at Libor plus 100 basis points. Interest ranges from Libor plus 79.5 bps to 130 bps, based on Aon’s debt ratings.

There is a facility fee of 8 bps to 20 bps, also based on ratings.

The revolver matures on Feb. 2, 2020 and is subject to two one-year extensions.

The agreement contains covenants that require the company to maintain a minimum ratio of consolidated adjusted EBITDA to consolidated interest expense of 4 times and a maximum ratio of consolidated funded debt to consolidated adjusted EBITDA of 3.25 times.

The new revolver replaces the existing €650 million multi-currency revolving loan credit facility dated as of Oct. 15, 2010, which was scheduled to mature on Oct. 15, 2015.

Citigroup Global Markets, Inc., Merrill Lynch, Pierce, Fenner & Smith Inc. and Morgan Stanley Senior Funding, Inc., are joint lead arrangers and joint book managers. Bank of America, NA and Morgan Stanley are syndication agents.

Aon is a London-based provider of risk management, insurance and reinsurance brokerage and also human resources solutions and outsourcing services.

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