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Aon Announces the Pricing of $1.5 Billion of Senior Unsecured Notes

Source: Aon

Posted on 09 Sep 2010

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Aon Corporation on Tuesday announced that it has agreed to sell $1.5 billion of senior unsecured notes in an underwritten public offering.

Of these notes, $600 million will mature on September 30, 2015 and bear interest at a fixed annual rate of 3.50 percent; $600 million will mature on September 30, 2020 and bear interest at a fixed annual rate of 5.00 percent; and $300 million will mature on September 30, 2040 and bear interest at a fixed annual rate of 6.25 percent. The offering is expected to close on September 10, 2010.

Net proceeds from the offering are intended to be used in connection with Aon's merger transaction with Hewitt Associates, Inc., which was announced on July 12, 2010. Upon closing of the offering, the net proceeds will be deposited into an escrow account to be held until the merger transaction is consummated or terminated, in which case the escrowed funds will be used to fund in part a mandatory redemption of the notes. The notes are being issued in lieu of drawing on the senior bridge term loan credit agreement, which Aon executed on August 13, 2010.

Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. Incorporated, Banc of America Securities LLC, Deutsche Bank Securities Inc. and RBS Securities Inc. served as joint book-running managers, and Aon Benfield Securities, Inc., ANZ Securities, Inc., Loop Capital Markets LLC, RBC Capital Markets Corporation, UBS Securities LLC and Wells Fargo Securities, LLC served as co-managers in the offering.

This offering was made pursuant to a prospectus supplement to Aon's prospectus dated June 8, 2009, filed as part of its effective shelf registration statement relating to these securities. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described therein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.