i2B Capital, a provider of direct financing to niche-market financial entrepreneurs, closed an $8 million structured term loan for National Surety Underwriters, previously known as Agency Bonding Captives.

In addition, investors contributed a further $3.5 million to the transaction closing.

The funding will be used by Nationaly Surety Underwriters for the capitalization of a new and wholly owned subsidiary, National Fidelity Reinsurance Company, a special-purpose surety reinsurance captive licensed through the North Carolina Insurance Department. The financing will also be used for the merger of McCabe and Independent Corporate Underwriters, a managing general underwriter specializing in surety bonds based in New Jersey.

The new combined entity will enable NSU subsidiary NFRC to underwrite and reinsure surety bonds through its licensed insurance carrier partner, Clear Blue Insurance, of up to $2 million in any one bond and up to $4 million in the aggregate per principal insured.

“This funding is an excellent example of i2B Capital’s ability to navigate and resolve complex business financing issues,” said Larry Curran II, CEO of i2B Capital. “The transaction included capitalization for three companies in three states with wide-ranging legal and regulatory requirements to create one synergistic entity able to service a broad spectrum of surety requirements.”

National Surety Underwriters CEO Rennie Rodriguez said, “Our expertise is building and managing specialty insurance agencies and we see tremendous opportunity for consolidation in a fragmented surety bond industry. Through offering a unique package to contracted surety bond agents and targeted strategic acquisitions, we are building a networked system of top-line surety agents.”