Daily News: November 14, 2016

Cerberus Provides New $280MM Facility to Support Patriot National Recap

Patriot National, a provider of technology and outsourcing solutions to the insurance industry, closed a new credit facility with Cerberus Business Finance, an affiliate of Cerberus Capital Management, to recapitalize the company.

The facility consisted of a new $250 million term loan and $30 million revolving credit line.

The company also announced a significant capital distribution to shareholders, and an expansion of its share repurchase program.

“The Board of Directors will continue to evaluate all options for value creation and, at the same time, we are taking decisive action to enhance the value of the company by driving organic growth in our core insurance services and technology businesses,” said Steven M. Mariano, president and chief executive officer of Patriot National. “Our new credit facility with Cerberus significantly enhances our financial flexibility to execute on our plans for enhanced growth and returns in 2017.”