JACKSONVILLE, Fla. — (Oct. 18, 2017) — On October 16, 2017, Fortegra Financial Corporation (“Fortegra”), a leading specialty insurer and subsidiary of Tiptree Inc. (“Tiptree”), completed its offering of $125 million 8.50% Fixed Rate Resetting Junior Subordinated Notes due 2057 (the “Notes”). Substantially all of the net proceeds from the Notes were used to repay Fortegra’s existing credit facility, which was terminated.
These funds will reposition Fortegra’s balance sheet, strengthen the company’s positioning with industry rating agencies, and generate a source of long term capital.
“We’re pleased to announce the closing of this junior subordinated notes offering,” said Fortegra Chief Financial Officer Mike Grasher. “The capital raise repositions our balance sheet, generating a source of long term capital which we believe will be viewed favorably by rating agencies, agents and our insureds.”
The Notes, which are issued under an indenture, are the unsecured obligations of Fortegra and rank in right of payment and upon liquidation, junior to all of Fortegra’s current and future senior indebtedness. The Notes are not obligations of or guaranteed by any of Fortegra’s subsidiaries or any other Tiptree entities. So long as no event of default has occurred and is continuing, Fortegra may defer all or part of the interest payments on the Notes on one or more occasions for up to five consecutive years per deferral period. The indenture governing the Notes contains customary affirmative and negative covenants and events of default.
The Notes were privately placed under the Securities Act of 1933, as amended (the “Securities Act”). The Notes have not been, and will not be, registered under the Securities Act or the securities laws of any other place and may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This disclosure is not intended to constitute an offering of, the solicitation of, or offer to purchase, the Notes or any other security.
For more information on Fortegra and its services, please visit www.fortegra.com.
Fortegra Financial Corporation (a Tiptree Inc. company) and its subsidiaries comprise a single-source insurance services provider that offers a range of consumer protection options including warranty solutions, credit insurance, and specialty underwriting programs. Delivering multifaceted coverage with an unmatched service experience for domestic and international partners and their customers, Fortegra solves immediate, everyday needs, empowering consumers to worry less and Experience More.