Summary
Aon Corporation (Aon) announced on March 1, 2011, through an 8-K filing, that its indirect wholly-owned subsidiary, Aon Finance N.S. 1, ULC, has priced Cdn$375 million in Senior Unsecured Debentures due March 8, 2018. These debentures carry a fixed annual interest rate of 4.76%, payable semi-annually, and are unconditionally guaranteed by Aon Corporation. The primary purpose of this issuance is to refinance Aon's Cdn$375 million of 5.05% debt securities maturing on April 12, 2011. This move is intended to manage Aon's debt maturity profile and potentially reduce its overall interest expense. The offering was conducted on a private placement basis to accredited investors in Canada, utilizing exemptions from prospectus requirements. The debentures have not been registered under the U.S. Securities Act and cannot be offered or sold in the United States without registration or an applicable exemption. This transaction reflects Aon's ongoing efforts to optimize its capital structure and manage its financial obligations effectively.
Key Highlights
- 1Aon's subsidiary priced Cdn$375 million in Senior Unsecured Debentures due March 8, 2018.
- 2The new debentures carry a fixed interest rate of 4.76% per annum, payable semi-annually.
- 3Aon Corporation provides an unconditional and irrevocable guarantee for the payment of principal and interest on the debentures.
- 4Proceeds from the issuance will be used to repay existing debt maturing on April 12, 2011.
- 5The offering was a private placement to accredited investors in Canada, relying on exemptions from Canadian prospectus requirements.
- 6The debentures are not registered in the U.S. and cannot be offered or sold in the U.S. absent registration or exemption.