Junior subordinated notes offering strengthens specialty insurer’s
balance sheet and long term outlook
JACKSONVILLE, Fla.--(BUSINESS WIRE)--
On October 16, 2017, Fortegra
Financial Corporation (“Fortegra”), a leading specialty insurer and
subsidiary of Tiptree Inc. (“Tiptree”), completed its offering of $125
million 8.50% Fixed Rate Resetting Junior Subordinated Notes due 2057
(the “Notes”). Substantially all of the net proceeds from the Notes were
used to repay Fortegra’s existing credit facility, which was terminated.
These funds will reposition Fortegra’s balance sheet, strengthen the
company’s positioning with industry rating agencies, and generate a
source of long term capital.
“We’re pleased to announce the closing of this junior subordinated notes
offering,” said Fortegra Chief Financial Officer Mike Grasher. “The
capital raise repositions our balance sheet, generating a source of long
term capital which we believe will be viewed favorably by rating
agencies, agents and our insureds.”
The Notes, which are issued under an indenture, are the unsecured
obligations of Fortegra and rank in right of payment and upon
liquidation, junior to all of Fortegra’s current and future senior
indebtedness. The Notes are not obligations of or guaranteed by any of
Fortegra’s subsidiaries or any other Tiptree entities. So long as no
event of default has occurred and is continuing, Fortegra may defer all
or part of the interest payments on the Notes on one or more occasions
for up to five consecutive years per deferral period. The indenture
governing the Notes contains customary affirmative and negative
covenants and events of default.
The Notes were privately placed under the Securities Act of 1933, as
amended (the “Securities Act”). The Notes have not been, and will not
be, registered under the Securities Act or the securities laws of any
other place and may not be offered or sold absent registration or an
applicable exemption from the registration requirements of the
Securities Act and applicable state laws. This disclosure is not
intended to constitute an offering of, the solicitation of, or offer to
purchase, the Notes or any other security.
For more information on Fortegra and its services, please visit www.fortegra.com.
About Fortegra
Fortegra Financial Corporation (a Tiptree Inc. company) and its
subsidiaries comprise a single-source insurance services provider that
offers a range of consumer protection options including warranty
solutions, credit insurance, and specialty underwriting programs.
Delivering multifaceted coverage with an unmatched service experience
for domestic and international partners and their customers, Fortegra
solves immediate, everyday needs, empowering consumers to worry less and
Experience More.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171018005908/en/
BLASTmedia for Fortegra
Andrea Hawman, 317-806-1900 ext. 137
andrea@blastmedia.com
Source: Fortegra Financial Corporation