HUB INTERNATIONAL LIMITED COMPLETES AMENDMENT AND EXTENSION OF SENIOR SECURED LOAN FACILITIES

 

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 Add Title:  HUB INTERNATIONAL LIMITED COMPLETES AMENDMENT AND EXTENSION OF SENIOR SECURED LOAN FACILITIES
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 Location:  Chicago
 Date:    2012-04-30  
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Hub International Limited (“HUB”) today announced the successful completion of an amendment and extension of its senior secured term loan and revolving credit facilities under its existing U.S. and Canadian Senior Secured Credit Agreements.

The amendment and extension transaction was strongly supported by Hub’s lenders, with approximately 75% of the Initial Term Loan B, approximately 87% of the Additional Term Loan B and100% of the U.S. and Canadian revolving credit facilities and the Canadian overdraft facility extending.

“We could not be more pleased by the overwhelming support received from our lender group on this transaction,” said Marty Hughes, Chairman and CEO, “the extension of a significant portion of our debt will provide us with flexibility in executing our long-term strategies.”

Following the amendment and extension, the U.S. revolving credit facility and the Canadian facilities that were scheduled to mature in June of 2013 and June of 2014, respectively, will now mature in June of 2016. The maturity of approximately $544 million of the Initial Term Loan B was extended from June of 2014 to June of 2017; and $169 million of the Additional Term Loan B was extended from June of 2014 to December of 2017.

The amendment of the U.S. facility included a pricing increase of 200 basis points to the U.S. revolving credit facility and the extended portion of the Initial Term Loan B and the restoration of the incremental facility for up to $150 million plus additional amounts which may be used solely to refinance outstanding indebtedness under the credit agreement. There were no pricing adjustments to the extended Additional Term Loan B or the Canadian facilities. Lenders holding approximately $185 million of the Initial Term Loan B and $26 million of the Additional Term Loan B did not extend and will retain their existing pricing and maturity.

The Joint Bookrunners for the amendment and extension of the U.S. facility were Morgan Stanley Senior Funding, Inc. (“MSSF”), as Sole Lead Arranger, RBC Capital Markets, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated. Royal Bank of Canada (“RBC”) was Sole Lead Arranger and Bookrunner for the amendment and extension of the Canadian facilities.

Headquartered in Chicago, IL, Hub International Limited is a leading global insurance brokerage that provides a broad array of property and casualty, life and health, employee benefits, investment and risk management products and services through offices located in the United States, Canada and Brazil.

Forward-looking Statements
This press release may contain certain statements relating to future events, which are forward-looking statements as the term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on information currently available to the Company and are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed in, or implied by, these statements, including, but not limited to, general economic conditions in North America, changes in premium rates, the competitive environment, the actual cost of resolution of contingent liabilities, and those matters discussed under “Risk Factors” in Part I of the Company’s Annual Reporting Package as of and for the year-ended December 31, 2011. Forward-looking statements contained herein speak only as of the date made, and, thus, the Company undertakes no obligation to update or publicly announce the revision of any of these forward looking statements to reflect new information, future events, developments, or changed circumstances for any reason.

 

 

 

 

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CONTACT:

MEDIA CONTACTS:

Scott Goodreau
Hub International Limited
Chief Legal Officer
Phone: 312-279-4886
Scott.Goodreau@hubinternational.com

 

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 SOURCE :   HUB International Limited