Aon Announces Commencement of Cash Tender Offers and Related Consent Solicitations for Outstanding Debt Securities of NFP
Corp.
(April 2, 2024) – Aon plc (NYSE: AON) (“Aon”), a leading global professional services firm, announced today
that its wholly owned subsidiary, Randolph Acquisition Corp. (the “Offeror”), has commenced cash tender offers for any and all of the outstanding 6.875% Senior Notes due 2028 (the “Unsecured 2028 Notes”), 4.875% Senior Secured Notes due
2028 (the “Secured 2028 Notes”), 7.500% Senior Secured Notes due 2030 (the “2030 Notes”) and 8.500% Senior Secured Notes due 2031 (the “2031 Notes” and, together with the Secured 2028 Notes
and the 2030 Notes, the “Secured Notes,” and the Secured Notes, together with the Unsecured 2028 Notes, the “Notes”),
each issued by NFP Corp. (the “Issuer”), upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement, dated the date hereof (as it may be amended or supplemented from time to time, the “Offer
to Purchase”; each offer to purchase a series of Notes, an “Offer” and collectively, the “Offers”).
In connection with the Offers, and on the terms and subject to the conditions set forth in the Offer to
Purchase, the Offeror is soliciting consents of holders of the Notes (collectively, the “Consent Solicitations”) (i) to eliminate or modify substantially all of the restrictive covenants relating to the Issuer and its restricted subsidiaries,
certain reporting obligations, certain events of default and related provisions in the applicable indenture relating to such Notes and to reduce the notice period required in connection with an optional redemption of the Notes (the “Proposed
Amendments”) and (ii) in the case of the Secured Notes, to release all of the collateral securing the obligations of the Issuer and the guarantors party thereto (the “Proposed Release Amendments”). In order to adopt the Proposed Amendments with
respect to the Unsecured 2028 Notes and the Secured Notes, the Offeror must receive validly delivered consents from holders thereof representing at least a majority of the aggregate principal amount outstanding of the Unsecured 2028 Notes and the
Secured Notes, respectively, with the holders of the Secured Notes voting as a single class. In order to adopt the Proposed Release Amendments with respect to the Secured Notes, the Offeror must receive validly delivered consents from holders
thereof representing at least 66⅔% of the aggregate principal amount outstanding of the Secured Notes, with the holders thereof voting as a single class. Holders may not tender their Notes without delivering their consents to the Proposed Amendments and, in the case of the Secured Notes, to the Proposed Release Amendments, and may not deliver
consents to the Proposed Amendments or the Proposed Release Amendments without tendering their related Notes. A valid withdrawal of tendered Notes at or before the Withdrawal Deadline (as defined below) will constitute the valid revocation of
consents.
The early tender deadline for each Offer is 5:00 p.m., New York City time, on April 15, 2024 (such time and date with respect to each Offer, as it may be
extended, the “Early Tender Date”), and each Offer will expire at 5:00 p.m., New York City time, on April 30, 2024 (such time and date with respect to each Offer, as it may be extended, the “Expiration Date”), in each case, unless earlier
terminated by the Offeror. Notes tendered may be withdrawn at any time at or before 5:00 p.m., New York City time, on April 15, 2024 (such time and date with respect to each Offer, as it may be extended, the “Withdrawal Deadline”) but not
thereafter, except in certain limited circumstances as described in the Offer to Purchase. The Offeror may extend an Early Tender Date without extending the related Withdrawal Deadline. If necessary, the Offeror intends to extend the Expiration
Date for the Offers, without extending the related Withdrawal Deadline (unless required by law), to have the Expiration Date coincide with the closing of the Merger (as defined below), which is currently expected to close in mid-2024, although we
cannot assure you that the Merger will close in a timely manner or at all.
The tables below summarize certain payment terms of the Offers and the Consent Solicitations:
Fixed Price Notes
|
Title of Security
|
CUSIPs/ISINs
|
Principal Amount Outstanding
|
Tender Consideration(1)
|
Early Tender Payment(1)
|
Total Consideration(1)(2)
|
|
6.875% Senior Notes due 2028
|
CUSIP Nos.: 65342R AD2, U65103 AF7, U6510P AA9, U65103 AK6
ISINs: US65342RAD26, USU65103AF70, USU6510PAA94, USU65103AK65
|
$2,075,000,000
|
$990.00
|
$30.00
|
$1,020.00
|
|
4.875% Senior Secured Notes due 2028
|
CUSIP Nos.:
65342R AE0, U65103 AH3, U65103 AJ9
ISINs: US65342RAE09, USU65103AH37, USU65103AJ92
|
$550,000,000
|
$975.00
|
$30.00
|
$1,005.00
|
|
|
(1) |
Per $1,000 principal amount. |
|
|
(2) |
The Total Consideration payable for Fixed Price Notes (as defined below) validly tendered at or prior to the applicable Early Tender Date and accepted for purchase will be the
applicable Total Consideration specified above, and is inclusive of the Early Tender Payment. |
Fixed Spread Notes
|
Title of Security
|
CUSIPs/ISINs
|
Principal Amount Outstanding
|
U.S. Treasury Reference Security
|
Bloomberg Reference Page
|
Fixed Spread
|
Early Tender Payment(1)
|
Hypothetical Total Consideration(1)(2)
|
|
7.500% Senior Secured Notes due 2030
|
CUSIP Nos.: 65342R AF7, U65103 AL4
ISINs:
US65342RAF73, USU65103AL49
|
$350,000,000
|
5.000% UST due September 30, 2025
|
FIT 4
|
50 bps
|
$30.00
|
$1,063.76
|
|
8.500% Senior Secured Notes due 2031
|
CUSIP Nos.: 65342R AG5, U65103 AM2
ISINs: US65342RAG56, USU65103AM22
|
$350,000,000
|
1.625% UST due September 30, 2026
|
FIT 5
|
50 bps
|
$30.00
|
$1,115.14
|
|
|
(1) |
Per $1,000 principal amount. |
|
|
(2) |
The hypothetical Total Consideration payable for Fixed Spread Notes (as defined below) validly tendered at or prior to the applicable Early Tender Date and accepted for purchase
is based on the hypothetical Reference Yield determined as of 2:00 p.m., New York City time, on April 1, 2024, and is inclusive of the Early Tender Payment; it excludes Accrued Interest (as defined below) and assumes an Early Settlement
Date (as defined below) of April 16, 2024. The Reference Yield used to determine actual consideration is expected to be calculated on April 15, 2024 and the Early Settlement Date, if any, is to be determined. See Schedule A of the Offer to Purchase for the calculation formula for determining the Total Consideration for the Fixed Spread Notes. |
| |
|
|
The “Total Consideration” offered per $1,000 principal amount of Notes of any series identified in the table above titled “Fixed Price Notes” (the “Fixed Price Notes”) tendered and accepted for
purchase pursuant to the applicable Offer will be the amount set forth under the heading “Total Consideration”.
The “Total Consideration” offered per $1,000 principal amount of Notes of any series identified in the table above titled “Fixed Spread Notes” (the “Fixed
Spread Notes”) tendered and accepted for purchase pursuant to the applicable Offer will be determined in accordance with the formula set forth in the Offer to Purchase by reference to the fixed spread for such series (the “Fixed Spread”) specified
on such table plus the yield (the “Reference Yield”) based on the bid-side price of the applicable U.S. Treasury Reference Security specified on such table (as applicable to each series of Notes, the “Reference Security”) as quoted on the Bloomberg
Reference Page specified on such table (with respect to each Reference Security, the “Reference Page”) at 2:00 p.m., New York City time, on April 15, 2024, unless such date is extended or the Offer and related Consent Solicitation are earlier
terminated. The sum of the Fixed Spread and the Reference Yield is referred to as the “Repurchase Yield.”
Holders validly tendering Notes at or before the applicable Early Tender Date will be eligible to receive the applicable Total Consideration with respect to
the Notes tendered. Holders validly tendering Notes after the applicable Early Tender Date but at or before the applicable Expiration Date will be eligible to receive only the applicable “Tender Consideration” for such Notes, which is equal to the
applicable Total Consideration less the amount in cash set forth in the table above under the heading “Early Tender Payment.” In addition, holders whose Notes are purchased in the Offers will receive accrued and unpaid interest in respect of their
purchased Notes from the last interest payment date of such Notes up to, but not including, the applicable settlement date for such Offer (“Accrued Interest”).
Each Offer and the related Consent Solicitation will expire on the Expiration Date. Except as set forth below, payment for the Notes that are validly tendered
at or prior to the Expiration Date and that are accepted for purchase will be made on the date referred to as the “Final Settlement Date.” It is anticipated that the Final Settlement Date for the Notes will be May 2, 2024, the second business day
after the Expiration Date. The Offeror reserves the right, in its sole discretion, to make payment for Notes that are validly tendered at or prior to the Early Tender Date and that are accepted for purchase on the date referred to as the “Early
Settlement Date.” The Early Settlement Date for the Notes, if applicable, will be a date following the Early Tender Date and prior to the Expiration Date on which the conditions to the consummation of the applicable Offer, including the Merger
Condition (as defined below), are satisfied or waived.
The Offeror’s obligation to consummate the Offers is subject to the satisfaction or waiver of certain conditions, which are more fully described in the Offer
to Purchase, including, among others, the consummation of the acquisition of NFP Intermediate Holdings A Corp. (“NFP Intermediate”) by the Offeror (the “Merger”) on the terms and conditions set forth in the Agreement and Plan of Merger dated
December 19, 2023 (as amended, supplemented, waived or otherwise modified from time to time), by and among Aon, the Offeror, Randolph Merger Sub LLC, NFP Intermediate and NFP Parent Co, LLC (the “Merger Condition”). The consummation of the Merger is not conditioned upon, either directly or indirectly, the consummation of the Offers or the Consent Solicitations.
Morgan Stanley & Co. LLC is acting as dealer manager and solicitation agent (the “Dealer Manager and Solicitation Agent”) for the Offers and the Consent
Solicitations. Questions regarding the terms of the Offers and the Consent Solicitations can be directed to the Dealer Manager and Solicitation Agent, Morgan Stanley & Co. LLC, at (800) 624-1808 (toll free) and (212) 761-1057 (collect).
The information and tender agent for the Offers and Consent Solicitations is D.F. King & Co., Inc. Holders with questions or who would like additional
copies of the Offer to Purchase may call D.F. King & Co., Inc. toll-free at (800) 290-6432 or (212) 232-3233 (collect).
This news release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell the Notes. The Offers and
the Consent Solicitations are being made only pursuant to the Offer to Purchase that the Offeror will be distributing to holders promptly. Holders and investors should read carefully the Offer to Purchase because it contains important information,
including the various terms of and conditions to the Offers and the Consent Solicitations. None of the Offeror, the Dealer Manager and Solicitation Agent, the information and tender agent or their respective affiliates is making any recommendation
as to whether or not holders should tender all or any portion of their Notes in the Offers or deliver their consents in the Consent Solicitations.
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