8-KMaterial AgreementsExhibits & Filings

BROWN & BROWN, INC. 8-K Report, Material Agreement (Jan 27, 2011)

Filed January 27, 2011For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) filed an 8-K on January 27, 2011, to report on a material definitive agreement. Specifically, the company entered into a Confirmation of Acceptance on January 21, 2011, related to a Master Shelf and Note Purchase Agreement with Prudential Investment Management, Inc. (Prudential) and its affiliates. This confirmation signifies Brown & Brown's agreement to issue $100,000,000 in aggregate principal amount of senior unsecured notes due September 15, 2018, to accounts managed by Prudential or its affiliates. The fixed interest rate for these notes is set at 4.50%, with a closing and funding date scheduled for September 15, 2011. This transaction indicates continued financing relationships between Brown & Brown and Prudential.

Key Highlights

  • 1Brown & Brown, Inc. entered into a definitive agreement on January 21, 2011, for the issuance of $100 million in senior unsecured notes.
  • 2The notes are due September 15, 2018.
  • 3The notes will be purchased by one or more accounts managed by Prudential Investment Management, Inc. or its affiliates.
  • 4The interest rate on these notes is fixed at 4.50% per annum.
  • 5The closing and funding date for this note issuance is September 15, 2011.
  • 6This agreement follows previous note purchases by Prudential affiliates in 2004 and 2006, indicating an established financing relationship.

Frequently Asked Questions

This 8-K filing serves to report a material definitive agreement, specifically the confirmation of acceptance for the issuance of $100 million in senior unsecured notes by Brown & Brown, Inc. to Prudential Investment Management, Inc. and its affiliates.

The notes will have a principal amount of $100,000,000, a fixed interest rate of 4.50%, and a maturity date of September 15, 2018. The closing and funding are scheduled for September 15, 2011.

The notes will be purchased by one or more accounts managed by Prudential Investment Management, Inc. or its affiliates. This indicates a continuation of a financing relationship with Prudential.

This filing primarily details a new debt issuance. While it adds to the company's long-term debt, specific impacts on the overall debt structure would require further analysis of the company's complete financial statements and debt covenants, which are not fully detailed in this 8-K.