BRP Group’s subsidiary Baldwin Risk Partners has amended its senior revolving credit facility, increasing its capacity to $225 million, up $100 million from its previous amount of $125 million.

BRP also has the ability, subject to approval, to utilize an accordion feature to increase the committed line under the credit facility by an additional $75 million to $300 million.

Under the amended and restated senior revolving credit facility, borrowings initially accrue interest on amounts drawn at LIBOR plus 200 bps, an improvement of 150 bps from the prior facility. Interest rates are based on the company’s total net leverage ratio, but are capped at LIBOR plus 300 bps (125 bps lower than the previous cap).

“We are pleased to materially increase the capacity of our revolving credit facility while at the same time significantly reducing our cost of capital, which is a testament to our stewardship of our balance sheet and our consistent, prudent usage of debt capital,” said Kris Wiebeck, chief financial officer of BRP Group. “We believe the completion of the amended facility positions us well to execute on additional Partnership opportunities in 2020, produce ongoing interest expense savings, and represents another small step in our long-term plan of becoming a Top Ten insurance broker within the next 10 years.”

JPMorgan acted as sole bookrunner and lead arranger and will serve as administrative agent and lender under the revolving credit facility, while Wells Fargo, Bank of America, Cadence Bank and Wintrust Financial will serve as additional lenders.

BRP Group is an independent insurance distribution firm delivering tailored insurance and risk management insights and solutions.