Brown & Brown Inc. has entered into a five-year $1.35 billion unsecured credit facility to fund acquisitions and future growth, the Daytona Beach, Fla.-based broker announced Thursday.
The credit agreement provides for a revolving credit facility in an aggregate amount up to $800 million and term loans in an aggregate amount of $550 million, said Brown & Brown in a statement. In addition, the company may request, at the option of participating lenders, an additional $500 million of funding capacity within the facility.
“We are very pleased to have secured this new credit facility, and we believe that its commercial and financial terms will help position us well for funding our acquisitions and future growth,” said R. Andrew Watts, Brown & Brown's executive vice president, treasurer and chief financial officer in the statement. “We believe the significant level of interest to participate in the facility demonstrates the support we have from our banking partners and our strong financial position.”
Funds will be drawn to finance the Wright Insurance Group L.L.C. acquisition, refinance certain existing indebtedness of the company and for general corporate purposes, including the financing of future acquisitions, said Brown & Brown in the statement.
Brown & Brown announced in January that was acquiring Uniondale, N.Y.-based Wright Insurance for $606.5 million.