Daytona Beach, Fla.-based insurance broker Brown & Brown Inc. said it has entered into a credit agreement to borrow up to $200 million over the next three years.
The credit facility will allow the broker to borrow the money for a term of up to 10 years at a fixed rate of interest based on the Treasury rates available at the time of borrowing plus an applicable credit spread.
Brown & Brown said that under the plan it would initially borrow $25 million represented by unsecured senior notes issued through a private placement. The notes will bear interest at an annual fixed rate of 5.66 percent and will mature in 2016.
The facility was created with Prudential Capital Group, an institutional investment business of Prudential Financial Inc.
Additionally, the broker said it has amended its unsecured revolving credit facility with a national banking institution to extend its term an additional five years until 2011, and to reduce the credit facility from $75 million to $20 million.
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