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January 10, 2019updated 29 Mar 2019 5:51am

Marsh to fund JLT acquisition through $5bn senior debt

Marsh & McLennan Companies (MMC) has unveiled plans to issue $5bn of senior debt to fund its planned $5.6bn takeover of Jardine Lloyd Thompson Group (JLT).

In September, MMC signed an agreement to acquire JLT. JLT shareholders are entitled to get cash payment of £19.15 per share that equals to an enterprise value of approximately $6.4bn.

The debt offering includes six tranches of senior notes with maturities of up to 30 years.

MMC stated that the pricing of the notes includes $700m aggregate principal amount of its 3.5% senior notes due 2020.

It also includes $1bn aggregate principal amount of its 3.875% senior notes due 2024, along with $1.25bn aggregate principal amount of its 4.375% senior notes due 2029.

Additionally, the offering includes $500m aggregate principal amount of MMC’s 4.750% senior notes due 2039, $1.25bn aggregate principal amount of its 4.9% senior notes due 2049, as well as $300m aggregate principal amount of its floating rate senior notes due 2021.

Announcing the deal, MMC said that the company will fund the transaction using a combination of cash on hand and proceeds from debt financing.

In November, 99.9% of JLT’s shareholders approved the deal.

Earlier, in October, MMC obtained the nod of the US Federal Trade Commission (FTC) to go ahead with its planned acquisition of JLT.

Now, the company expects to wrap up the deal in the spring of 2019, subject to certain customary conditions.

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