NewStar Financial served as lead arranger and administrative agent for senior credit facilities provided to World Insurance, a specialty insurance broker focused on mid-sized businesses and high net worth individuals.
The credit facilities consisted of a revolving line of credit, which was undrawn at closing, and a combination of funded and delayed draw term loans. The transaction included an accordion feature, which could significantly increase the size of the facilities at the company’s request subject to lender approval.
The initial proceeds from the financing were used to fund several small acquisitions and refinance existing debt, leaving significant undrawn borrowing capacity available to support the company’s future funding needs related to its growth strategy.
World Insurance co-founders Rich Eknoian and Phil Nisbet said, “We are excited to complete this financing with NewStar as they have the right capabilities to support our business plan based on a deep understanding of the insurance brokerage sector.” They added, “The ongoing relationship with NewStar ensures that we have ready access to the resources needed to deliver on a growth strategy that includes an expanded geographic footprint and the addition of new products.”
