AJG · 10-Q · 2026Q2 · Full report

Outstanding Indebtedness

Arthur J. Gallagher & Co. · 2026-08-05 · Importance 56 · Surprise 24 · In source text

At June 30, 2026, Gallagher had $9.550 billion of Senior Notes, $2.683 billion of corporate borrowings, $1.365 billion drawn under its Credit Agreement and $134 million outstanding under its Premium Financing Debt Facility. The company had $1.386 billion of cash and cash equivalents, while $1.133 billion remained available under the Credit Agreement after letters of credit. During the first six months of 2026, Gallagher borrowed $5.010 billion and repaid $3.645 billion under the Credit Agreement, primarily to fund acquisitions, acquisition earnouts and general corporate purposes. The company used operating cash to repay $640 million of fixed-rate note maturities in February and June 2026.

Key facts

• We borrowed an aggregate of $5,010 million and repaid $3,645 million under the Credit Agreement in the six-month period ended June 30, 2026; at June 30, 2026 there were $1,365 million of borrowings outstanding under the Credit Agreement and $1,133 million remained available for potential borrowings due to outstanding letters of credit. source
• The Credit Agreement provides for a five-year unsecured revolving credit facility in the amount of $2,500 million, with the ability to increase commitments up to $3,000 million, and its maturity was extended to April 3, 2030. source
• The December 11, 2024 public offering sold 30.4 million shares at $280.00 per share for aggregate offering price of $8.5 billion, with net proceeds after underwriting discounts of $8.3 billion; an underwriter option for 4.6 million shares was exercised on January 6, 2025 and closed January 7, 2025 for net proceeds of $1.3 billion. source
• At June 30, 2026, we had $9,550 million of Senior Notes, $2,683 million of corporate related borrowings outstanding, $1,365 million of borrowings outstanding under our Credit Agreement, $134 million of borrowings outstanding under our Premium Financing Debt Facility and a cash and cash equivalent balance of $1,386 million. source
• On February 12, 2024 we filed a shelf registration Form S-3 registering an indeterminate amount of securities; on November 15, 2022 we filed a Form S-4 registering 7.0 million shares for acquisitions and at June 30, 2026, 5.4 million shares remained available for issuance under that registration statement. source
• On February 2026 we used operating cash to fund the $140 million Series II note maturity due February 13, 2026 (fixed rate 4.85%) and $175 million Series I note maturity due February 27, 2026 (fixed rate 4.73%). source
• During June 2026 we used operating cash to fund the $175 million Series Q note maturity due June 2, 2026 (fixed rate 4.40%) and $150 million Series P note maturity due June 24, 2026 (fixed rate 4.36%). source
• During the three-month periods ended June 30, 2026 and 2025, we recognized $4 million and $17 million of income, respectively, related to net adjustments in the estimated fair value of earnout obligations for 47 and 35 acquisitions, respectively; during the six-month periods ended June 30, 2026 and 2025, we recognized $1 million and $14 million of income, respectively, for 77 and 55 acquisitions, respectively. source

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