By Wendy Van Sickle
Columbus, Ohio, Feb. 23 – Aon Corp. and Aon Global Holdings plc sold a $1.5 billion two-part offering of senior notes (Baa2/A-/BBB+) on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The notes are guaranteed by Aon plc and Aon Global Ltd.
Aon sold $600 million of five-year notes with a 2.85% coupon at 99.944 to yield 2.86%, or at a spread of 97 basis points over Treasuries.
The notes will be redeemable before April 28, 2027 with a make-whole premium of Treasuries plus 15 bps.
A 30-year tranche of notes was also part of the transaction. Aon sold $900 million of 3.9% notes at 98.486 to yield 3.987%, or with a spread of Treasuries plus 170 bps.
The 30-year tranche can be optionally redeemed with a make-whole premium of Treasuries plus 30 bps until six months before the maturity date, when they can be redeemed at par.
Joint bookrunners for the notes are Morgan Stanley & Co. LLC, Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
Proceeds will be used for general corporate purposes.
Aon is a London-based provider of risk management, insurance and reinsurance brokerage and also human resources solutions and outsourcing services.
| Issuers: | Aon Corp. and Aon Global Holdings plc
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| Guarantors: | Aon plc and Aon Global Ltd.
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| Issue: | Senior notes
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| Amount: | $1.5 billion
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| Bookrunners: | Morgan Stanley & Co. LLC, Barclays, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
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| Co-managers: | ANZ Securities, Inc., Aon Securities LLC, BNY Mellon Capital Markets, LLC, nabSecurities, LLC, Scotia Capital (USA) Inc., UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Matheson for Irish law, Sidley Austin LLP for U.S. law and Freshfields Bruckhaus Deringer LLP for English law
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | Feb. 23
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| Settlement date: | Feb. 28
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| Ratings: | Moody’s: Baa2
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| S&P: A-
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| Fitch: BBB+
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| Distribution: | SEC registered
|
|
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| 2027 notes
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| Amount: | $600 million
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| Maturity: | May 28, 2027
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| Coupon: | 2.85%
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| Price: | 99.944
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| Yield: | 2.86%
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| Spread: | Treasuries plus 97 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps until April 28, 2027; thereafter at par
|
| Cusip: | 03740LAD4
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|
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| 2052 notes
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| Amount: | $900 million
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| Maturity: | Feb. 28, 2052
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| Coupon: | 3.9%
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| Price: | 98.486
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| Yield: | 3.987%
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| Spread: | Treasuries plus 170 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps until Aug. 28, 2051; thereafter at par
|
| Cusip: | 03740LAE2
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