Insurance broker Arthur J. Gallagher & Co. has entered into a £570 million unsecured credit facility with several financial institutions including Barclays Bank.
The US$800 million or £566.6 million unsecured credit facility expires on 8 April 2021 and replaces a US$600 million unsecured revolving credit facility that is due to expire on 19 September 2018.
Gallagher may draw funds from the facility for acquisitions or general corporate purposes. At the company’s request, the facility may be increased to $1.1 billion upon satisfaction of certain conditions.
Gallagher entered into the credit facility with a group of financial institutions led by Bank of Montreal, Bank of America Merrill Lynch, Barclays Bank, Citibank and JP Morgan Chase Bank.
Apart from the new credit facility, Gallagher has also announced that it expects to close a USD$275-million private placement debt transaction in June, consisting of three series of notes due between 2026 and 2031, with a weighted average interest rate of 4.47%.
Relating to its anticipated closing of a private placement of senior unsecured notes, the company issued a press release containing "forward-looking statements" that could be impacted important factors such as changes in worldwide and national economic conditions, changes in premium rates and in insurance markets generally.
The “forward-looking statements” could also be affected by changes in the insurance brokerage industry's competitive landscape, changes in the interest rate environment, changes in the attractiveness of Gallagher's private placement notes to investors, and unexpected financial challenges or strategic opportunities.