CLEARWATER, Fla., Dec. 13, 2016 /PRNewswire/ -- Heritage Insurance
Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a
property and casualty insurance holding company, today announced
that it has entered into a definitive purchase agreement with funds
managed by Fermat Capital Management, LLC and HSCM Bermuda
Management Company, among other financial institutions, providing
for the private placement of an aggregate principal amount of
$79.5 million of the Company's senior
secured notes due 2023. The notes will bear annual interest equal
to the three month LIBOR plus 8.75%. The transaction is expected to
close at the end of this week.
Heritage intends to use the net proceeds from the offering to
participate opportunistically in mergers and acquisitions, to make
strategic investments and for general corporate purposes.
Said Bruce Lucas, Heritage
Chairman and CEO, "I am thrilled to partner with our lenders in the
largest debt transaction for the Florida property insurance industry this year.
We view the commitment by Fermat and HSCM Bermuda, who we believe
are two of the most trusted names in the reinsurance industry, as
another testament to the strength of our company. We remain growth
oriented and focused on opportunities for strategic expansion. We
anticipate this loan transaction will enable us to continue
strategic M&A and generate higher returns for our shareholders.
We have consistently stated our preference to avoid shareholder
dilution and to fund our capital needs by adding some leverage to
our capital structure. This transaction fulfills this goal and
allows the company to seek higher returns for shareholders while
bolstering our capital position for our policyholders."
The notes have not been registered under the Securities Act or
the securities laws of any other jurisdiction and may not be
offered or sold in the United
States absent registration or an applicable exemption from
registration requirements. The notes are being offered only to
Qualified Institutional Buyers as defined in Rule 144A under the
Securities Act and to persons outside the
United States that are not U.S. Persons as defined in
Regulation S under the Securities Act.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy the notes and shall not constitute
an offer, solicitation or sale of the notes in any jurisdiction in
which such offer, solicitation or sale is unlawful.
About Heritage
Heritage Insurance Holdings, Inc. is a property and casualty
insurance holding company headquartered in Clearwater, Florida. Its subsidiaries,
Heritage Property & Casualty Insurance Company and Zephyr
Insurance Company, write approximately $587
million and $58 million,
respectively, of personal and commercial residential premium
through a large network of experienced agents. The Company is
currently writing property and casualty insurance policies in
Florida, Hawaii, North
Carolina and South
Carolina. Heritage Insurance Holdings, Inc. is led by a
seasoned senior management team with an average of 30 years of
insurance industry experience.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
Heritage's business that are not historical facts are
"forward-looking statements" that involve risks and uncertainties.
For a discussion of additional risks and uncertainties, which could
cause actual results to differ from those contained in the
forward-looking statements, see Heritage's Securities and Exchange
Commission (SEC) filings, including, but not limited to, the risk
factors in Heritage's Annual Report on Form 10-K for the year ended
December 31, 2015, as filed with the
SEC on March 8, 2016.
Heritage Insurance Holdings Inc.
Investor Contact:
Steve Martindale, CFO
727-362-7203
smartindale@heritagepci.com
or
Melanie Skijus, Investor Relations
Director
727-362-7262
mskijus@heritagepci.com
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SOURCE Heritage Insurance Holdings, Inc.