Hamilton announces share repurchase from funds affiliated with Blackstone

Hamilton has entered into an agreement to repurchase 9,124,729 Class A common shares owned by funds affiliated with Blackstone Alternative Solutions at $12 per share, representing a 12% discount to the 30-day volume weighted average price of the company’s Class B common shares.

The total purchase price for those shares is $109,496,748. The total purchase price will be funded by a loan under the company’s revolving credit facility which the company intends to repay with funds withdrawn from the Two Sigma Hamilton Fund. The company expects to close the repurchase transaction on May 10, 2024 subject to customary closing conditions. The common shares purchased by Hamilton will be cancelled and the company will have 101,878,284 shares outstanding following the repurchase transaction.

The company recently released its financial results for the first quarter, ending the period with $157.2 million in net income.

“We are very pleased to have this opportunity to repurchase Hamilton shares at an attractive price and return capital to our shareholders. We are also grateful to BAS for its support and investment in Hamilton over the years. This transaction allows BAS to fully exit an investment that was made over ten years ago, resulting in meaningful earnings per share, book value per share, and ROE accretion to Hamilton shareholders. Along with the strength of our first quarter earnings, and our recent AM Best rating upgrade, this transaction should create significant value for our shareholders, while not impeding our plans for strategic growth in both specialty insurance and reinsurance at this favorable time in the market cycle.” – Pina Albo, CEO of Hamilton.