Navacord, a Canadian insurance brokerage firm, completed a C$1.05 billion ($830 million) financing. The transaction provides Navacord with increased capacity to continue pursuing M&A transactions and other strategic growth initiatives.
“We are very pleased to announce this financing event, and we would like to thank our existing and new lenders for their support,” Shawn DeSantis, co-founder, president and CEO of Navacord, said. “The enhanced capacity and flexibility this transaction provides are testament to the resiliency and growth of our business and the future opportunities before us.”
Under the terms of the completed transaction, Navacord will use the proceeds from new first and second lien term loans to replace its previous term loan and other debt. Additionally, Navacord plans to use the proceeds to fund near-term M&A opportunities and other strategic growth activities and return capital to its employee shareholders.
“We look forward to continuing to build our business in partnership with our shareholders and lenders and in service to our clients and underwriter relationships,” T. Marshall Sadd, co-founder and executive chairman of Navacord, said. “Navacord is focused on building the ‘Great Canadian Brokerage,’ and this transaction positions us well to execute that plan over the coming years.”
The transaction was executed by Navacord management and Madison Dearborn Partners (MDP), a Chicago-based private equity firm with insurance services expertise. Navacord employees and funds affiliated with MDP are both shareholders in Navacord.
“We are excited to bring together a world-class group of lenders that appreciate the strength of Navacord’s business and its future growth prospects,” Michael Dolce, managing director and head of capital markets at MDP, said.
TD Securities is acting as administrative agent on the revolving credit facility and first lien term loan and Bank of Montreal is acting as administrative agent on the second lien term loan.
