ProSight Specialty announces closing of new debt refinance facility
ProSight Global, Inc. has announced that it has entered into a $165 million delayed draw term loan which will refinance existing indebtedness.
Larry Hannon, CEO and President of ProSight, commented, “We are pleased to have closed a deal to refinance our debt. This transaction will lower our cost of funds considerably and supports our growth. We appreciate the support of our lending group who collaborated with our Finance and Legal teams to execute this transaction during a period of extraordinary volatility and uncertainty.”
The joint lead arrangers of the facility are SunTrust Robinson Humphrey and Citizens Bank, N.A.
Refinancing Terms
The $165 million delayed draw term loan has a three-year maturity and includes available interest rates linked to customary base rates and to LIBOR, and if drawn upon today would bear interest at LIBOR +300bps subject to a 75bp LIBOR floor based on ProSight’s current debt to capitalization ratio. The existing $165 million private placement notes have a weighted average coupon of 7.35%. ProSight will use the new facility to repay the 2013 and 2015 senior notes in full when due in November, 2020.
The credit facility contains customary representations, warranties, and covenants.
About ProSight
Founded in 2009 and headquartered in Morristown, New Jersey, ProSight Global, Inc. is an innovative property and casualty insurance company that designs unique insurance solutions to help customers improve their business and realize value from their insurance purchasing decision. The company focuses on select niche industries, deploying differentiated underwriting and claims expertise with the goal of enhancing each customer’s operating performance. ProSight’s products are sold through a limited and select group of retail and wholesale distribution partners. Each of ProSight’s regulated insurance company subsidiaries are rated “A-” (Excellent) by A.M. Best. To learn more about ProSight visit www.prosightspecialty.com.
