Aon secures $7 billion in new credit facilities tied to USI acquisition
The professional services firm entered into a $4 billion term loan agreement and a $3 billion revolving credit facility.
Aon plc (AON) announced Wednesday that it entered into two credit agreements totaling $7 billion on Sept. 18, 2026, to support its pending acquisition of USI Advantage Corp.
The financing includes a $4 billion unsecured delayed draw term loan facility and a $3 billion unsecured revolving credit facility arranged through Citibank, N.A. and other lenders. The term loan consists of two tranches: a two-year $2 billion facility maturing on Sept. 18, 2028, and a three-year $2 billion facility maturing on Sept. 18, 2029.
Credit terms and credit facilities
The $4 billion term loan will be available to Aon North America, Inc. as borrower on the closing date of the previously announced merger with USI Advantage Corp. under an agreement dated Aug. 30, 2026. Proceeds will fund a portion of the cash consideration for the transaction and related fees.
Simultaneously, the company replaced two existing $1 billion revolving credit facilities scheduled to mature in 2027 and 2028 with a new $3 billion revolving credit facility maturing on Sept. 18, 2031. Borrowings under the revolver are available to multiple subsidiaries in U.S. dollars, pounds sterling, and euros, subject to a $1 billion sublimit for Aon UK Limited.
Financial covenants and interest
Borrowings under both agreements bear interest based on term SOFR, alternate base rates, eurocurrency rates, or SONIA, plus an applicable margin linked to the company's senior unsecured long-term debt rating.
Both credit agreements require the company to maintain a consolidated adjusted EBITDA to consolidated interest expense ratio of not less than 4.00 to 1.00. They also mandate a consolidated funded net debt to consolidated adjusted EBITDA ratio of not more than 4.75 to 1.00 following the acquisition, stepping down over eight fiscal quarters to 3.50 to 1.00.
Why it matters
The credit agreements secure the debt financing required to complete the acquisition of USI Advantage Corp., establishing the capital structure for the transaction while expanding overall liquidity through a larger revolving credit facility.
By the numbers
| Metric | Value | Source |
|---|---|---|
| Term Loan Facility | $4,000,000,000 | Credit Agreement |
| Tranche 1 Term Loan | $2,000,000,000 | Credit Agreement |
| Tranche 2 Term Loan | $2,000,000,000 | Credit Agreement |
| Revolving Credit Facility | $3,000,000,000 | Credit Agreement |
| Aon UK Limited Sublimit | $1,000,000,000 | Credit Agreement |
| Minimum Interest Coverage Ratio | 4.00 to 1.00 | Credit Agreement |
| Maximum Leverage Ratio Post-Acquisition | 4.75 to 1.00 | Credit Agreement |
Remaining conditions
Availability of the term loan remains subject to customary limited conditionality upon the closing date of the USI Advantage Corp. acquisition. The revolving credit facility permits optional one-year extensions subject to lender approval.