Hub announces new debt deal

HUB International announced the completion of a $6.9 billion debt raise to refinance the company’s $6.4 billion term loan debt that was coming due in 2025, extending the maturity of the new debt to 2030.

In addition, HUB’s banking group “demonstrated its confidence in the company” by raising its revolving credit facilities by more than $200 million to increase capacity for additional acquisitions while fueling investments in strategic initiatives that drive organic growth.

In 2022, HUB closed 68 acquisition deals and has publicly announced 22 deals in 2023.

“The transaction demonstrates tremendous market confidence in HUB as a leader in the insurance brokerage industry and greatly enhances our liquidity profile. It’s an affirmation of our ability to deliver a reliably strong ROI for the firms that we acquire and acknowledges the strength of our investments in initiatives and boundaryless resources for our advisors that fuels our organic growth.” – Marc Cohen, president and CEO, Hub International.

“We believe that today’s announcement represents the largest high yield bond offering in the financial services space since the financial crisis, as well as the largest leveraged finance transaction for an insurance broker that has ever been recorded.” – Hub’s CFO, Joe Hyde.