The Liberty Company Insurance Brokers, a privately held insurance brokerage, completed a $340 million refinancing transaction on July 31.
This transaction, which was oversubscribed, is comprised of a $30 million revolving credit facility, a $180 million term loan and a $130 million delayed-draw term loan. The transaction refinances the company’s existing debt. J.P. Morgan, Fifth Third Bank and Royal Bank of Canada were the joint lead arrangers for the facility, with J.P. Morgan serving as administrative agent. Additionally, Bank of America, Citibank, TD Bank and InsurBanc are also lenders for the facility.
“Liberty’s offering was oversubscribed in today’s challenging credit environment and that is a strong demonstration of the market’s confidence in Liberty’s business, trajectory and the remarkable organic and inorganic growth that our organization has experienced over the past few years,” Bernadetta Scholz, CFO of Liberty, said.
In 2022, Liberty achieved a 47% organic growth rate in addition to completing 37 acquisitions. This combination fueled growth of its revenues from $54 million to $149 million during the year while allowing its EBITDA-to-debt leverage to remain at 3.5x.
In addition to M&A activity, Liberty intends to use the capital from the refinancing transaction to continue to build out its resources to drive more organic growth though its practice groups and industry specializations, MGA/program offerings, employee benefit and human capital management resources, risk management services and other initiatives.
“We are grateful for the tremendous support extended by the banking community to our business,” Bill Johnson, CEO of Liberty, said. “I look forward to continuing to lead our exceptional team of colleagues as we drive Liberty’s growth into the future. Our success is built on the foundation of our unique culture, mission and values along with our ever-growing resources and collaborative and entrepreneurial environment.”
