International broker AJG reveals $1 billion war chest

International broker AJG reveals $1 billion war chest | Insurance Business

International broker AJG reveals $1 billion war chest
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.