Brown & Brown updates $1.25B credit facilities
Brown & Brown, Inc. entered into a Third Amended and Restated Credit Agreement that significantly updates its bank financing.
Accepted by SEC EDGAR
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Form Type
8-K
Rhea-AI Filing Summary
Brown & Brown, Inc. entered into a Third Amended and Restated Credit Agreement that significantly updates its bank financing. The agreement increases the revolving credit facility from $800 million to $1,250 million and extends its maturity to June 5, 2031. It also adds a $250 million Term A-1 loan facility maturing June 5, 2029 and a $250 million Term A-2 loan facility maturing June 5, 2031. As of the date of this filing, $825 million is outstanding under the combined facilities, which include customary covenants, limitations and events of default for similarly rated borrowers.
8-K Event Classification
2 items: 1.01, 2.03
2 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Key Figures
Revolving Credit Facility size: $1,250 million
Prior revolver size: $800 million
Term A-1 Loan Facility: $250 million
+3 more
6 metrics
Revolving Credit Facility size
$1,250 million
Amended revolving credit facility limit
Prior revolver size
$800 million
Existing revolving credit facility under 2021 agreement
Term A-1 Loan Facility
$250 million
Term loans maturing June 5, 2029
Term A-2 Loan Facility
$250 million
Term loans maturing June 5, 2031
Outstanding borrowings
$825 million
Amount outstanding under the Facilities as of filing date
Revolver maturity
June 5, 2031
Maturity date for $1,250 million revolving credit facility
Key Terms
amended and restated credit agreement, Revolving Credit Facility, Term A-1 Loan Facility, Term A-2 Loan Facility, +1 more
5 terms
amended and restated credit agreement financial
"entered into an amended and restated credit agreement (the “Third Amended and Restated Credit Agreement”)"
An amended and restated credit agreement is a company’s original loan contract that has been updated and replaced by a single new document incorporating all changes. Think of it like refinancing and rewriting a mortgage so new payment schedules, interest rates, borrowing limits, or borrower obligations are combined into one clear contract. Investors care because those new terms change a company’s cash flow, borrowing flexibility and default risk, which can affect creditworthiness and share value.
Revolving Credit Facility financial
"under the existing revolving credit facility (the “Revolving Credit Facility”) from $800 million to $1,250 million"
A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.
Term A-1 Loan Facility financial
"term loans in the aggregate amount of $250 million with a maturity date of June 5, 2029 (the “Term A-1 Loan Facility”)"
Term A-2 Loan Facility financial
"term loans in the aggregate amount of $250 million with a maturity date of June 5, 2031 (the “Term A-2 Loan Facility”)"
events of default financial
"includes various covenants, limitations and events of default customary for similar facilities"
Events of default are specific breaches or failures listed in a loan, bond, or credit agreement that give lenders the right to act, such as demanding immediate repayment, raising interest rates, or taking secured assets. They matter to investors because triggering one is like setting off a financial alarm: it raises the chance of foreclosure, restructuring, or bankruptcy and can sharply reduce the value of a company’s stock or bonds and increase borrowing costs.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What new credit agreement did Brown & Brown (BRO) enter into?
Brown & Brown entered into a Third Amended and Restated Credit Agreement with a syndicate of banks. It replaces the October 27, 2021 agreement and updates facility size, maturities and terms with covenants and events of default customary for similarly rated borrowers.
How much revolving credit is available to Brown & Brown (BRO) now?
The revolving credit facility for Brown & Brown increased from $800 million to $1,250 million. This larger line of credit, shared with certain subsidiaries, provides additional committed borrowing capacity under the amended and restated credit agreement through its extended maturity.
What term loan facilities did Brown & Brown (BRO) add in this agreement?
The agreement adds two term loan facilities for Brown & Brown: a $250 million Term A-1 Loan Facility maturing June 5, 2029, and a $250 million Term A-2 Loan Facility maturing June 5, 2031. Together with the revolver, these are referred to as the Facilities.
When do Brown & Brown’s (BRO) amended credit facilities mature?
The $1,250 million revolving credit facility now matures on June 5, 2031. The Term A-1 Loan Facility of $250 million matures June 5, 2029, while the Term A-2 Loan Facility of $250 million shares the June 5, 2031 maturity date.
How much is currently outstanding under Brown & Brown’s (BRO) facilities?
As of the date of the report, Brown & Brown has $825 million outstanding under the Facilities. This amount reflects combined usage of the revolving credit facility and term loan borrowings under the amended and restated credit agreement.
Which banks participate in Brown & Brown’s (BRO) amended credit facilities?
The facilities involve lenders including JPMorgan Chase as administrative agent, Bank of America, Truist and BMO as co-syndication agents, and several others as co-documentation agents. Many provide Brown & Brown additional services like cash management, letters of credit and investment banking.
AI-generated analysis. How Rhea-AI works. Not financial advice.
