By Devika Patel
Knoxville, Tenn., June 13 – Arthur J. Gallagher & Co. will conduct a private placement of $648 million of senior unsecured notes in five fixed- and floating-rate tranches, according to an 8-K filing with the Securities and Exchange Commission.
Of the notes, $250 million will settle in late June 2017, and the remainder will settle in early August 2017.
The weighted average maturity of the $598 million of senior fixed-rate notes is 11.6 years, and their weighted average interest rate is 4.04% after giving effect to hedging gains.
The notes will be issued as follows:
• $250 million of 4.09% senior notes due in 2027;
• $98 million of 4.14% senior notes due in 2027;
• $100 million of 4.19% senior notes due in 2029;
• $150 million of 4.34% senior notes due in 2032; and
• $50 million of floating rate notes due in 2023, at an interest rate of Libor plus 165 basis points.
Proceeds will be used to repay debt.
Itasca, Ill.-based Arthur J. Gallagher is an insurance brokerage and risk management services company.
| Issuer: | Arthur J. Gallagher & Co.
|
| Issue: | Senior unsecured notes
|
| Amount: | $648 million
|
| Coupon: | Weighted average of 4.04% (fixed-rate notes)
|
| Maturity: | Weighted average of 11.6 years (fixed-rate notes)
|
| Call option: | At par plus make-whole amount
|
| Trade date: | June 13
|
| Settlement dates: Late June (for $250 million) and early August (for $398 million)
|
| Distribution: | Private placement
|
|
|
| 4.09% notes
|
| Amount: | $250 million
|
| Coupon: | 4.09%
|
| Maturity: | 2027
|
|
|
| 4.14% notes
|
| Amount: | $98 million
|
| Coupon: | 4.14%
|
| Maturity: | 2027
|
|
|
| 4.19% notes
|
| Amount: | $100 million
|
| Coupon: | 4.19%
|
| Maturity: | 2029
|
|
|
| 4.34% notes
|
| Amount: | $150 million
|
| Coupon: | 4.34%
|
| Maturity: | 2032
|
|
|
| Floaters
|
| Amount: | $50 million
|
| Coupon: | Libor plus 165 bps
|
| Maturity: | 2023
|
|
|
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