By Lisa Kerner
Charlotte, N.C., June 25 – Arthur J. Gallagher & Co. detailed its previously announced private placement of $700 million of senior notes in an 8-K filing with the Securities and Exchange Commission on Wednesday.
The notes were issued as follows:
• $50 million of 2.8% series K notes due 2018;
• $50 million of 3.2% series L notes due 2019;
• $50 million of 3.48% series M notes due 2020;
• $200 million of 4.13% series N notes due 2023;
• $200 million of 4.31% series O notes due 2025; and
• $150 million of 4.36% series P notes due 2026.
The notes are guaranteed by some of Gallagher’s subsidiaries.
The notes are redeemable at par plus a make-whole amount.
If Gallagher does not have an investment-grade rating within 90 days after a change in control, it must offer to prepay all of the outstanding notes at par.
As previously reported, proceeds will be used to fund the company’s previously announced acquisition of Noraxis Capital Corp. and to pay down borrowings under its line of credit facility.
Itasca, Ill.-based Arthur J. Gallagher is an insurance brokerage and risk management services company.
| Issuer: | Arthur J. Gallagher & Co.
|
| Issue: | Senior notes
|
| Amount: | $700 million
|
| Coupon: | Weighted average of 4.02%
|
| Call option: | At par plus make-whole amount
|
| Settlement date: | June 24
|
| Distribution: | Private placement
|
|
|
| Series K notes
|
| Amount: | $50 million
|
| Coupon: | 2.8%
|
| Maturity: | 2018
|
|
|
| Series L notes
|
| Amount: | $50 million
|
| Coupon: | 3.2%
|
| Maturity: | 2019
|
|
|
| Series M notes
|
| Amount: | $50 million
|
| Coupon: | 3.48%
|
| Maturity: | 2020
|
|
|
| Series N notes
|
| Amount: | $200 million
|
| Coupon: | 4.13%
|
| Maturity: | 2023
|
|
|
| Series O notes
|
| Amount: | $200 million
|
| Coupon: | 4.31%
|
| Maturity: | 2025
|
|
|
| Series P notes
|
| Amount: | $150 million
|
| Coupon: | 4.36%
|
| Maturity: | 2026
|
|
|
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