“We are pleased to have closed a deal to refinance our debt,” Larry Hannon, CEO and president of ProSight, said. “This transaction will lower our cost of funds considerably and supports our growth. We appreciate the support of our lending group who collaborated with our finance and legal teams to execute this transaction during a period of extraordinary volatility and uncertainty.”
The $165 million delayed draw term loan has a three-year maturity and includes available interest rates linked to customary base rates and to LIBOR, and if drawn upon today would bear interest at LIBOR +300bps subject to a 75bp LIBOR floor based on ProSight’s current debt to capitalization ratio. The existing $165 million private placement notes have a weighted average coupon of 7.35%. ProSight will use the new facility to repay 2013 and 2015 senior notes in full when due in November 2020.
The credit facility contains customary representations, warranties and covenants.
ProSight Global is a property and casualty insurance company.