Hilb Rogal & Hobbs gets $425 million credit facility

By Sara Rosenberg

New York, April 26 - Hilb Rogal & Hobbs Co. closed on a new $425 million senior secured credit facility, according to a company news release.

Banc of America Securities LLC acted as lead arranger and bookrunner on the deal. Agents on the deal include Bank of America, SunTrust Bank, ING Capital LLC, PNC Bank and Branch Banking and Trust Co. of Virginia.

The facility consists of a $325 million five-year revolver and a $100 million seven-year term loan, with both tranches priced at Libor plus 150 basis points.

There is a $125 million accordion feature.

Proceeds from the facility were used to pay off outstanding amounts of approximately $240 million under the company's prior credit facility and are expected to fund, in part, future acquisitions and to provide for working capital and general corporate purposes.

"This successful refinancing of our credit facility provides us not only reduced pricing, but the financial covenants and other provisions provide us increased operational and financial flexibility," said Michael Dinkins, executive vice president and chief financial officer, in the release.

Hilb Rogal & Hobbs is a Glen Allen, Va.-based insurance and risk management intermediary.

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