8-KOther EventsExhibits & Filings

Aon plc 8-K Report, Corporate Update (May 13, 2014)

Filed May 13, 2014For Securities:AON

Summary

This 8-K filing by Aon plc, dated May 12, 2014, announces the company's successful offering and sale of €500,000,000 aggregate principal amount of its 2.875% Senior Notes due 2026. The offering was made under a registration statement on Form S-3. Aon Corporation, the Guarantor, is providing a full and unconditional guarantee for these notes, which are governed by an Indenture dated May 24, 2013. The net proceeds from this issuance are expected to be approximately €493.2 million, after deducting underwriting discounts and estimated expenses. Aon plc intends to utilize these proceeds for general corporate purposes. Notably, a significant portion of these funds will be allocated to repaying the company's outstanding 6.25% €500 million debt securities that mature in July 2014. This proactive debt management suggests a strategy to refinance existing obligations at a lower interest rate.

Key Highlights

  • 1Aon plc issued €500 million of 2.875% Senior Notes due 2026.
  • 2The offering was conducted under a Form S-3 registration statement.
  • 3Aon Corporation provides a full and unconditional guarantee for the new notes.
  • 4Net proceeds are estimated at €493.2 million after expenses.
  • 5Proceeds will be used for general corporate purposes.
  • 6A primary use of proceeds is to repay €500 million of 6.25% debt maturing in July 2014.
  • 7The transaction reflects a refinancing effort at a lower interest rate.

Frequently Asked Questions

This 8-K filing announces Aon plc's successful offering and sale of €500,000,000 of Senior Notes due 2026. It details the terms of the offering, the parties involved, and the intended use of the proceeds.

Aon plc raised approximately €493.2 million in net proceeds after deducting underwriting discounts and estimated expenses. The company plans to use these funds for general corporate purposes, with a specific intention to repay its €500 million of 6.25% debt securities maturing in July 2014.

Aon Corporation's full and unconditional guarantee enhances the creditworthiness of the Senior Notes due 2026, providing investors with additional security and potentially making the debt more attractive and easier to place in the market.

The new Senior Notes due 2026 carry a coupon of 2.875%. This is significantly lower than the 6.25% interest rate on the €500 million debt securities that are due for repayment in July 2014. This indicates a successful refinancing effort to reduce the company's interest expense.