Summary
Brown & Brown, Inc. (BRO) has filed a Form 8-K to report an amendment to its Master Shelf and Note Purchase Agreement with Prudential Investment Management, Inc. The key change is the extension of the expiration date for issuing additional senior unsecured notes under this facility from December 22, 2009, to September 30, 2012. This extension provides the company with continued access to private placement debt financing for an additional three years.
Key Highlights
- 1Brown & Brown, Inc. amended its Master Shelf and Note Purchase Agreement with Prudential Investment Management, Inc.
- 2The expiration date for issuing additional senior unsecured notes under the agreement has been extended from December 22, 2009, to September 30, 2012.
- 3The company has previously issued $50.0 million in senior notes under this agreement.
- 4The amendment provides continued access to a $200.0 million private uncommitted shelf facility.
- 5Brown & Brown paid a $50,000 renewal fee to Prudential for this amendment.
- 6This filing indicates the company is proactively managing its debt facilities in the current economic environment.
Frequently Asked Questions
The main purpose of this 8-K filing is to inform investors about a material amendment to Brown & Brown's Master Shelf and Note Purchase Agreement with Prudential Investment Management, Inc. Specifically, it extends the company's ability to issue additional senior unsecured notes under this facility.
The primary change is the extension of the expiration date of the shelf facility. The period during which Brown & Brown can issue additional notes has been extended from December 22, 2009, to September 30, 2012. The company also paid a $50,000 renewal fee.
Brown & Brown has previously issued $50.0 million in senior unsecured notes under this Master Agreement: $25.0 million of 5.66% Senior Notes, Series C, due December 22, 2016, and $25.0 million of 5.37% Senior Notes, Series D, due January 15, 2015.
No, this amendment primarily extends the time period (shelf life) during which the company can issue notes up to the originally established $200.0 million limit. It does not increase the total principal amount available under the facility.