Summary
Brown & Brown, Inc. (BRO) announced on March 12, 2019, the successful issuance and sale of $350 million in 4.500% Senior Notes due 2029. The offering, which generated net proceeds of approximately $346.3 million after deducting underwriting discounts and expenses, was conducted under the company's existing shelf registration statement. These notes are senior unsecured obligations, ranking equally with existing and future senior unsecured indebtedness. The net proceeds are earmarked for repaying a portion of the outstanding borrowings under the company's credit facility and for general corporate purposes, indicating a move to refinance existing debt and enhance financial flexibility. The indenture governing these notes includes customary covenants that limit the company's ability to incur certain secured debt and to merge or transfer substantially all of its assets, alongside a provision for note repurchase upon a change of control triggering event.
Key Highlights
- 1Completion of a $350 million issuance of 4.500% Senior Notes due 2029.
- 2Net proceeds from the offering amounted to approximately $346.3 million.
- 3Proceeds will be used to repay a portion of outstanding credit facility borrowings and for general corporate purposes.
- 4The notes are senior unsecured obligations, on par with other existing and future senior unsecured debt.
- 5Maturity date for the new notes is March 15, 2029.
- 6The indenture contains covenants restricting certain secured debt incurrence and significant asset transfers.
- 7A 'change of control' provision requires the repurchase of notes under specific circumstances.