By Lisa Kerner
Charlotte, N.C., June 17 - Arthur J. Gallagher & Co. completed a private placement of $200 million of 3.69% senior series G notes due 2022 on Friday, according to a company news release.
Proceeds will be used to fund acquisitions and for general corporate purposes.
The notes have a make-whole call option at Treasuries plus 50 basis points, according to an 8-K filing with the Securities and Exchange Commission.
If the company does not have an investment-grade rating 90 days after a change of control, it must offer to repay the notes at par.
The company must not permit its cash flow leverage ratio to exceed 3.25 to 1.00 or its fixed-charge coverage ratio to be less than 1.75 to 1.00.
Purchasers include Prudential Insurance Co. of America, Gibraltar Life Insurance Co., Ltd., Lincoln National Life Insurance Co., Farmers Insurance Exchange, Mid Century Insurance Co., Physicians Mutual Insurance Co., Metropolitan Life Insurance Co., Union Fidelity Life Insurance Co. and New York Life Insurance Co.
The notes have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Itasca, Ill.-based Arthur J. Gallagher is an insurance brokerage and risk management services company.
| Issuer: | Arthur J. Gallagher & Co.
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| Issue: | Senior series G notes
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| Amount: | $200 million
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| Maturity: | 2022
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| Coupon: | 3.69%
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| Call option: | Make-whole at Treasuries plus 50 bps
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| Settlement date: | June 14
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| Distribution: | Private placement
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| Purchasers: | Prudential Insurance Co. of America, Gibraltar Life Insurance Co., Ltd., Lincoln National Life Insurance Co., Farmers Insurance Exchange, Mid Century Insurance Co., Physicians Mutual Insurance Co., Metropolitan Life Insurance Co., Union Fidelity Life Insurance Co. and New York Life Insurance Co.
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