Hub gets enough consents for 9% notes, 10¼% notes to amend indentures

By Toni Weeks

San Diego, Sept. 18 - Hub International Ltd. said it has accepted for purchase about $281 million, or 92%, of its $305 million of 9% senior notes due 2014 and about $363 million, or 92%, of its $395 million of 10¼% senior subordinated notes due 2015 by the consent payment deadline, 5 p.m. ET on Sept. 17, according to a company news release.

In connection with the tender offer, which began Sept. 4, Hub solicited consents from the noteholders to amend the indentures governing the notes. Consents were needed and received from the holders of a majority of each series of notes to amend the indentures, and Hub, the guarantors of the notes and U.S. Bank NA as trustee have executed supplemental indentures to the respective indentures governing both note series.

Among other changes, the proposed amendments will eliminate substantially all of the restrictive covenants, some events of default and certain other provisions in the indentures.

For each $1,000 principal amount, the company will pay $1,026.25 for the 9% notes and $1,030.63 for the 10¼% notes. These include a consent payment of $50.00 for each note tendered by the consent payment deadline. Holders will also receive accrued interest up to but excluding the payment date.

The company previously said that payment for notes tendered by the consent payment deadline will be made on or promptly following the consent payment deadline.

The offer will expire at the end of the day, midnight ET, on Oct. 1. Holders who validly tender their notes prior to the expiration date will receive $976.25 or $980.63 per $1,000 principal amount of the 9% notes and 10¼% notes, respectively.

Any notes purchased in the offer will be canceled.

The offer is conditioned on the completion of a planned financing transaction, among other conditions. Hub priced an upsized $740 million issue of six-year notes on Friday.

The dealer manager is Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) with Bank of America Merrill Lynch as co-dealer manager. The information agent and tender agent is D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 290-6426 for others).

Hub International is an insurance broker based in Chicago.

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