8-KMaterial AgreementsFinancial Events

BROWN & BROWN, INC. 8-K Report, Material Agreement (Jun 28, 2017)

Filed June 28, 2017For Securities:BRO

Summary

Brown & Brown, Inc. (BRO) announced on June 28, 2017, the execution of an Amended and Restated Credit Agreement, significantly enhancing its financial flexibility. This agreement amends and restates a prior credit facility from April 2014, extending the maturity date for its $800 million revolving credit facility and its $400 million in unsecured term loans to June 28, 2022. This refinancing provides the company with a longer-term capital structure and access to liquidity. The $400 million in term loans are re-evidenced, and as of the filing date, $400 million was outstanding under the revolving credit facility, indicating substantial undrawn capacity. The agreement includes standard covenants and conditions, positioning Brown & Brown to support its ongoing operations and strategic growth initiatives with an extended runway.

Key Highlights

  • 1Brown & Brown, Inc. entered into an Amended and Restated Credit Agreement on June 28, 2017.
  • 2The agreement extends the maturity date for the $800 million revolving credit facility to June 28, 2022.
  • 3The $400 million in unsecured term loans have also had their maturity extended to June 28, 2022.
  • 4The agreement includes customary covenants and limitations for similarly rated borrowers.
  • 5As of the filing date, $400 million was outstanding under the revolving credit facility, leaving significant available credit.
  • 6This refinancing improves the company's long-term capital structure and liquidity.

Frequently Asked Questions

The primary purpose of the Amended and Restated Credit Agreement is to extend the maturity dates of Brown & Brown's existing revolving credit facility and unsecured term loans, providing the company with enhanced financial flexibility and extended access to capital until June 28, 2022.

The agreement extends the maturity of the $800 million revolving credit facility and re-evidences the $400 million in unsecured term loans, with both now maturing on June 28, 2022. As of the filing date, $400 million was drawn under the revolving credit facility.

This agreement does not appear to increase the total principal amounts of the credit facilities ($800 million revolving and $400 million term loans). Instead, it amends and restates the existing terms, primarily focusing on extending the repayment timeline and re-affirming the terms for the $400 million in term loans. The outstanding balance under the revolving facility was $400 million at the time of filing.

The agreement involves several major financial institutions acting as lenders and agents, including JPMorgan Chase Bank, N.A. as administrative agent. The filing notes that these institutions and their affiliates have various other financial service relationships with Brown & Brown, which is common in corporate credit arrangements.