On February 27, 2023, Arthur J. Gallagher & Co. (the “Company”) entered into an underwriting agreement (the “Underwriting Agreement”) with BofA Securities, Inc. and Citigroup Global Markets Inc., as representatives of the underwriters named in Schedule A thereto (the “Underwriters”), with respect to the offering and sale of $350 million aggregate principal amount of its 5.500% Senior Notes due 2033 (the “2033 Notes”) and $600 million aggregate principal amount of its 5.750% Senior Notes due 2053 (“2053 Notes,” and together with the 2033 Notes, the “Notes”). The Underwriting Agreement is filed herewith as Exhibit 1.1. As a result of interest rate hedging arrangements entered into by the Company, the net interest expense shown in the Company’s financials will reflect a rate of approximately 4.0% and 4.8%, for the 2033 and 2053 Notes, respectively (for the 2053 Notes, this is applicable for the first 10 years following issuance).
The Notes offering has been registered under the Securities Act of 1933, as amended, pursuant to a shelf registration statement on Form S-3, file no. 333-254015 (the “Registration Statement”), filed with the U.S. Securities and Exchange Commission (the “SEC”). The Notes will be issued pursuant to an indenture, dated as of May 20, 2021 (the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”), as modified and supplemented in respect of the Notes by an Officers’ Certificate pursuant to the Indenture, dated as of March 2, 2023 (the “Officers’ Certificate”). The relevant terms of the Notes, the Indenture and the Officers’ Certificate are further described under the caption “Description of Notes” in the prospectus supplement dated February 27, 2023, filed with the SEC by the Company on February 28, 2023. This description is incorporated in this Item 8.01 by reference. The Notes offering is expected to close on March 2, 2023.
The Officers’ Certificate (including the forms of the Notes) is filed as an exhibit to this Current Report on Form 8-K and incorporated herein by reference. The description of the Officers’ Certificate (including the forms of the Notes) in this Current Report on Form 8-K is a summary and is qualified in its entirety by the terms of the Officers’ Certificate (including the form of the Notes). The Company is filing this Current Report on Form 8-K in order to file with the SEC certain items that are to be incorporated by reference into the Registration Statement. The opinion of Gibson, Dunn & Crutcher LLP relating to the validity of the Notes is filed herewith as Exhibit 5.1.
