Insurance brokerage PCF Insurance Services closed $400 million in incremental debt financing led by Blue Owl, a global alternative asset manager that acted as lead arranger and administrative agent for the transaction. The financing was materially oversubscribed and was upsized from $300 million to $400 million in response to strong demand from new and existing lenders. In addition, PCF Insurance Services reduced the margin on the majority of its debt by 50 basis points, which will provide for an annual savings in ongoing interest expense.
“This most recent financing is a testament to the strength of our team and commitment to growth and will enable us to further accelerate our M&A strategy,” Felix Morgan, CEO for PCF Insurance Services, said. “As part of PCF’s long-term commitment to growth, we seek to identify and acquire businesses that will benefit from strong shareholder value and robust shared services offerings along with access to collaborative, industry-leading professionals.”
The deal includes a delayed-draw term loan to support M&A that will be pari passu and mature concurrently with the company’s existing secured credit facilities. PCF Insurance Services last accessed the capital markets in July 2023, when it secured $400 million in incremental debt financing, which was also led by Blue Owl, and in February 2023 with a $500 million preferred equity investment co-led by Carlyle’s global credit platform and private equity firm HGGC. Blue Owl and Crescent Capital, both of which have existing minority equity stakes in the business, also participated in the preferred equity transaction.
“Felix and the management team at PCF Insurance Services continue to successfully execute on their growth strategy, and we are pleased to provide the company with additional capital to fund their long-term plan,” Lukas Spiss, managing director at Blue Owl Capital, said. “We look forward to seeing what they can accomplish over the coming years and are excited to continue our partnership.”
