$AON · Aon plc
Aon plc entered into two credit agreements on September 18, 2026: a $4 billion delayed-draw term loan facility (split evenly between two-year and three-year tranches) to fund the cash portion of its pending USI Advantage Corp. acquisition, and a $3 billion revolving credit facility that replaces two prior $1 billion facilities. The revolver matures September 2031 with optional extensions; the term loans mature September 2028 and 2029 respectively.
- $4B delayed-draw term loan: $2B two-year tranche (maturing Sept 2028) and $2B three-year tranche (maturing Sept 2029)
- $3B revolving credit facility replaces two prior $1B facilities, matures Sept 2031 with optional one-year extensions
- Term loan proceeds earmarked for cash consideration in the USI Advantage Corp. acquisition announced Aug 30, 2026
- Post-acquisition leverage covenant: net debt/EBITDA capped at 4.75x, stepping down to 3.50x over eight fiscal quarters
- Interest coverage covenant requires consolidated adjusted EBITDA / interest expense of at least 4.00x across all facilities
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The $4B term loan confirms Aon is moving forward with the USI acquisition and the $3B revolver doubling prior capacity signals confidence in post-merger liquidity needs.
Aon's USI acquisition financing mirrors the insurance brokerage sector's consolidation playbook — using low-cost debt to acquire mid-market platforms. The $3B revolver doubling prior capacity signals confidence in integration and working-capital needs.
Post-acquisition leverage steps from 4.75x to 3.50x net debt/EBITDA over eight quarters — failure to de-lever on schedule could trigger covenant breaches. The $4B term loan adds significant debt to fund the USI deal.
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