Arthur J. Gallagher & Co. Announces $700 Million Private Placement Debt Transaction

ITASCA, Ill., June 24, 2014 /PRNewswire/ -- Arthur J. Gallagher & Co. AJG today announced that the company has completed and funded a note purchase agreement for the private placement of $700 million of senior unsecured notes.  The agreement provides for six series of notes with a weighted average coupon rate of 4.02% and maturities as follows:  $50 million due in each of 2018, 2019 and 2020, $200 million due in 2023, $200 million due in 2025 and $150 million due in 2026.  Further details regarding these notes are available in our Current Report on Form 8-K filed with the SEC.

The company intends to use the net proceeds of the debt transaction primarily to fund its previously announced acquisition of Noraxis Capital Corporation and pay down borrowings under its line of credit facility.

The notes were issued in a private placement and have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 27 countries and offers client service capabilities in over 140 countries around the world through a network of correspondent brokers and consultants.

This press release contains a "forward-looking statement" within the meaning of the Private Securities Litigation Reform Act of 1995, relating to Gallagher's intended use of the net proceeds of the debt transaction. Important factors that could impact this forward-looking statement include changes in worldwide and national economic conditions, changes in premium rates and in insurance markets generally, changes in the insurance brokerage industry's competitive landscape, and unexpected financial challenges or strategic opportunities. Please refer to our filings with the SEC, including Item 1A, "Risk Factors," of our Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and our prospectus supplement filed on April 11, 2014, for a more detailed discussion of these and other factors that could impact this forward-looking statement.

CONTACT:    Marsha Akin
Director – Investor Relations
630-285-3501/ marsha_akin@ajg.com

SOURCE Arthur J. Gallagher & Co.