Kingstone Companies, Inc., an American P&C insurance holding company, has entered into a Note and Warrant Exchange Agreement with several holders to refinance its outstanding 5.50% Senior Notes due on December 30, 2022.
The Exchanging Noteholders hold approximately $21.55 million principal amount of the Company’s outstanding $30 million principal amount of Existing Notes.
In accordance with the Exchange Agreement, Kingstone will issue to the Exchanging Noteholders, in exchange for their Existing Notes, new 12.0% Senior Notes due December 30, 2024 in the aggregate principal amount of $19.95 million.
This will be issued along with approximately $1.6 million in cash and three-year warrants for the purchase of approximately 970,000 shares of common stock of the company, according to the announcement.
Barry Goldstein, Kingstone’s Chief Executive Officer, said: “We are pleased to have entered into this debt refinancing agreement, which will strengthen Kingstone’s balance sheet and extend our nearest debt maturity to December 30, 2024.
“This milestone represents an important vote of confidence in Kingstone on behalf of the investment community and will enable us to fully focus on our key initiatives. It’s clear that our Kingstone 2.0 strategy is taking hold, and as a team we’re focused on accelerating this progress as we work to drive enhanced value for our stockholders.”
Meryl Golden, Kingstone’s Chief Operating Officer, added: “Our team remains focused on executing with discipline in order to better select, underwrite, price, and manage our risks through the current macro environment.
“This refinancing will position us to best deliver on these commitments, and we look forward to leveraging Kingstone’s enhanced financial flexibility to the benefit of the stakeholders we serve.”
The exchange is scheduled to close on December 15, 2022, and, according to the announcement, Kingstone will fund the amount outstanding on the Existing Notes on their maturity date.
