Gallagher’s $1.4 Billion Equity Offering and $1.5 Billion Notes Offering

May 20, 2021

Cleary Gottlieb represented the underwriters, led by Morgan Stanley & Co. LLC, in a $1.4 billion equity offering, and led by BofA Securities Inc. and J.P. Morgan Securities LLC, in a $1.5 billion registered note offering by Arthur J. Gallagher & Co. (Gallagher).

The equity offering comprised of the issuance of 10.35 million shares of common stock and priced on May 12, 2021, and closed on May 17, 2021.

The debt offering comprised of the issuance of $650 million 2.5% senior notes due 2031 and $850 million 3.5% senior notes due 2051. The offering priced on May 13, 2021, and closed on May 20, 2021.

Gallagher intends to use the net proceeds of the offering to fund a portion of its previously announced acquisition of certain Willis Towers Watson plc reinsurance, specialty, and retail brokerage operations, which is part of a proposed regulatory remedy for the pending Aon plc and Willis Towers Watson plc combination. The capital market transactions were launched on the same day that the acquisition was announced.

Gallagher is a leading provider of insurance brokerage, consulting, and third-party property/casualty claims settlement and administration services to business and organizations around the world.