AJG agrees $800m war chest for potential acquisitions
Global broker Arthur J Gallagher & Co has entered into an $800 million unsecured credit facility, expiring on April 8, 2021, with a group of financial institutions led by Bank of Montreal, Bank of America Merrill Lynch, Barclays Bank, Citibank and JP Morgan Chase Bank.
At Gallagher's request, the facility may be increased to $1.1 billion upon satisfaction of certain conditions. This facility replaces a $600 million unsecured revolving credit facility that was due to expire on September 19, 2018. Funds may be drawn for acquisitions or general corporate purposes.
Gallagher also announced that it anticipates closing a private placement of $275 million of senior unsecured notes in June 2016, consisting of three series of notes due between 2026 and 2031 with a weighted average interest rate of 4.47 percent.
The private placement notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
