Aon enters into $400 million five-year credit agreement via Citibank

By Wendy Van Sickle

Columbus, Ohio, Oct. 20 – Aon plc and Aon Corp. entered into a $400 million five-year revolving credit agreement on Thursday 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 80.5 bps to 130 bps, based on Aon’s debt ratings.

There is a facility fee of 7 bps to 20 bps, also based on ratings.

The revolver matures on Oct. 19, 2022 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.

Citigroup Global Markets, Inc. and HSBC Securities (USA) Inc., are joint lead arrangers and joint book managers. HSBC is syndication agents.

Proceeds may be used for general corporate purposes.

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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