Hub International Limited said its sale of 4 million common stock shares would raise more than $100 million and be used to pay the company's debt.
On Friday, the Chicago-based insurance broker said it is pricing the sale of its common stock at $26.25 per share. The firm said the net proceeds–after underwriters' discount and commissions, but before offering expenses–would amount to $100.28 million, or $25.07 per share.
Hub said it also granted to the stock underwriters a 30-day option to purchase up to 600,000 additional common shares to cover overallotments, if any, at the same per share price.
Hub noted that the offering is subject to customary closing conditions and is expected to close on May 24. The firm said it intends to use the net proceeds from the offering to repay approximately $56 million in loans. The remaining amount would be used for general corporate purposes, including acquisitions.
Hub originally announced the common stock sale on May 12.
Stephens Inc. and Wachovia Securities will manage the offering, and Cochran Caronia Waller; Ferris, Baker Watts Incorporated; and Keefe, Bruyette & Woods will act as co-managers.
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