By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Feb. 27 – Arthur J. Gallagher & Co. priced $950 million of senior notes in two tranches (Baa2/BBB/BBB) on Monday, according to an FWP filed with the Securities and Exchange Commission and details from a market source.
There was $350 million of 5.5% 10-year notes at a spread of 160 basis points over Treasuries. These notes priced at 99.817 to yield 5.524%. Price talk had the notes coming in the Treasuries plus 185 bps area.
The deal also included $600 million of 5.75% 30-year notes at a spread of 190 bps over Treasuries. These notes priced at 98.998 to yield 5.821%. Spread talk had been in the 215 bps area.
BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays and BMO Capital Markets Corp. are the bookrunners.
Proceeds will be used for general corporate purposes, including the funding of future acquisitions.
Rolling Meadows, Ill.-based Gallagher is an insurance brokerage and risk management services company.
| Issuer: | Arthur J. Gallagher & Co.
|
| Amount: | $950 million
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays and BMO Capital Markets Corp.
|
| Co-managers: | Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC and Gallagher Securities, Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Hogan Lovells US LLP
|
| Counsel to underwriters: | Mayer Brown LLP
|
| Trade date: | Feb. 27
|
| Settlement date: | March 2
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 2033 notes
|
| Amount: | $350 million
|
| Maturity: | March 2, 2033
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| Coupon: | 5.5%
|
| Price: | 99.817
|
| Yield: | 5.524%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Dec. 2, 2032, then a par call; change-of-control call at 101
|
| Price talk: | Treasuries plus 185 bps area
|
| Cusip: | 04316JAD1
|
|
|
| 2053 notes
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| Amount: | $600 million
|
| Maturity: | March 2, 2053
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| Coupon: | 5.75%
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| Price: | 98.998
|
| Yield: | 5.821%
|
| Spread: | Treasuries plus 190 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Sept. 2, 2052, then a par call; change-of-control call at 101
|
| Price talk: | Treasuries plus 215 bps area
|
| Cusip: | 04316JAE9
|
|
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