BRP Group has today announced the proposed underwritten offering of 11,500,000 shares of its Class A common stock, subject to market conditions and other factors.
BRP expects to grant the underwriters a 30-day option to purchase up to 1,725,000 additional shares of its Class A common stock at the public offering price, less the underwriting discounts and commissions.
In conjunction with this offering, BRP disclosed an update on “MGA of the Future” policies in force, which grew to 440,155 at June 22, 2020 from 401,520 at March 31, 2020.
BRP intends to use the net proceeds from the sale of 10,750,000 of the shares of Class A common stock offered in the offering to purchase newly issued membership interests of Baldwin Risk Partners, LLC (“LLC Units”) from Baldwin Risk Partners, LLC.
Baldwin Risk Partners, LLC intends to use the proceeds from the sale of LLC Units to BRP as follows to pay fees and expenses in connection with the offering and for potential strategic acquisitions of, or investments in, other businesses or technologies that BRP believes will complement its current business and expansion strategies and other general corporate purposes.
BRP intends to use the net proceeds from the sale of the remaining 750,000 shares of Class A common stock offered in the offering to purchase 565,102 LLC Units from Lowry Baldwin, Chairman of BRP, 92,449 LLC Units from Elizabeth Krystyn and 92,449 LLC Units from Laura Sherman, each of whom is one of the Company’s founders.
J.P. Morgan, BofA Securities, Wells Fargo Securities and Jefferies are acting as joint book-running managers, and Keefe, Bruyette & Woods, A Stifel Company, Raymond James, William Blair, Dowling & Partners Securities LLC and Capital One Securities are acting as co-managers for the offering.
