Aon lines up $4 billion term loan to help pay for USI Advantage deal
The financing splits into a $2 billion tranche due 2028 and a $2 billion tranche due 2029, on top of a new $3 billion revolving credit facility
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Chart: AON, one-minute prices, three sessions
Aon has entered a $4,000,000,000 term loan agreement to help fund its acquisition of USI Advantage Corp and cover related fees. The loan is split into two equal tranches: $2,000,000,000 maturing September 18, 2028, and $2,000,000,000 maturing September 18, 2029.
Aon also signed a separate $3,000,000,000 revolving credit facility maturing September 18, 2031. That facility replaces two existing $1,000,000,000 revolving lines that had been due to mature in 2027 and 2028.
The term loan adds to the $13,500,000,000 bond offering already priced for the USI deal. Together with the new revolver, it gives Aon $4 billion in committed bank financing to cover acquisition costs and act as a liquidity backstop.
Lining up that much bank financing on top of the bond sale is a cautious move given rising borrowing costs. It suggests Aon is building in extra safety margin at a time when yields are climbing and market conditions are less certain.