S&P rates Hilb, Rogal & Hobbs loan BB

Standard & Poor's said it assigned a BB rating to Hilb, Rogal & Hobbs's (BB/stable) $425 million senior secured credit facility, which replaces the prior facility of the same amount and consists of a $325 million, five-year revolving credit facility and a $100 million, seven-year term loan.

The company used some of the proceeds to retire existing debt of about $240 million. The remaining $185 million of proceeds will be used for future acquisitions and general corporate purposes.

At the end of 2005, the company's debt to total capital and pretax interest coverage were about 32% and 6x, respectively. Pro forma, total capitalization levels remain unchanged.

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