Summary
Brown & Brown, Inc. (BRO) announced on March 15, 2022, the entry into an Underwriting Agreement to issue $1.2 billion in aggregate principal amount of Senior Notes. This includes $600 million of 4.200% Senior Notes due 2032 and $600 million of 4.950% Senior Notes due 2052. The company plans to use the net proceeds from this offering to finance its acquisition of GRP (Jersey) Holdco Limited, including associated fees and expenses.
Key Highlights
- 1Brokered Debt Offering: Brown & Brown successfully priced a $1.2 billion offering of senior notes.
- 2Dual Maturities: The offering comprises two tranches: $600 million maturing in 2032 and $600 million maturing in 2052.
- 3Coupon Rates: The 2032 Notes carry a 4.200% interest rate, while the 2052 Notes have a higher 4.950% rate.
- 4Acquisition Financing: Proceeds are earmarked to fund the cash consideration for the acquisition of GRP (Jersey) Holdco Limited.
- 5Underwriting Syndicate: J.P. Morgan Securities LLC, BofA Securities, Inc., BMO Capital Markets Corp., and Truist Securities, Inc. acted as underwriters.
- 6Shelf Registration: The notes are being offered under the company's existing Form S-3 Automatic Shelf Registration Statement.
- 7Closing Expected: The sale of the notes is anticipated to close on March 17, 2022.
Frequently Asked Questions
Brown & Brown is issuing a total of $1.2 billion in aggregate principal amount of senior notes, split equally between two maturities.
The net proceeds from the offering will be used to fund the cash consideration for the acquisition of GRP (Jersey) Holdco Limited, as well as related fees and expenses.
The offering includes $600 million of 4.200% Senior Notes due 2032 and $600 million of 4.950% Senior Notes due 2052.
The sale of the notes is expected to close on March 17, 2022.