Arthur J Gallagher (AJG
) has revealed a new $1.04 billion (US$800 million) credit facility that the business can use to bolster its acquisition funds.
The deal sees the international broker take an unsecured credit facility until 2021 with a group of major international financial institutions led by Bank of Montreal, Bank of America Merrill Lynch
, Barclays Bank, Citi Bank and JP Morgan Chase Bank.
The brokerage confirmed that while the current deal is for just over $ 1 billion that could rise to more than $1.4 billion (US$1.1 billion) at a later date.
“At Gallagher's request, the facility may be increased to US$1.1 billion upon satisfaction of certain conditions. This facility replaces a US$600 million unsecured revolving credit facility that was due to expire on September 19, 2018,” the brokerage said in a statement.
“Funds may be drawn for acquisitions or general corporate purposes.”
The expanded war chest follows a busy period for AJG
in the Australian market as the business purchased a 100% stake in Strathearn Insurance Group in December 2015
after spate of acquisitions which saw the business acquire Instrat Insurance Brokers
and Blue Holdings Group
at the end of 2014.