Arthur J Gallagher & Co has entered into a $500m unsecured credit facility with a group of 12 financial institutions led by Bank of Montreal, Bank of America, Citibank, Barclays Bank, and JP Morgan Chase Bank. The credit facility will expire on July 14, 2014.

According to Gallagher, it may also request an additional $100m of funding capacity within the facility. Funds may be drawn for stock repurchases, future acquisitions or general corporate purposes.

This agreement replaces a $450m unsecured revolving credit facility that was due to expire on October 4, 2010. Gallagher has added that currently, there are no borrowings outstanding under either the expiring or new credit facilities.

Arthur J Gallagher & Co is an Illinois-based international insurance brokerage and risk management services firm. It has operations in 15 countries and does business in more than 100 countries through a network of correspondent brokers and consultants.