Ryan Specialty has revealed that net proceeds from a new $600 million notes offering will be utilised for future acquisition opportunities and investments consistent with its strategy.
The specialty insurance services firm announced that Ryan Specialty, LLC, its indirect subsidiary, priced an offering of $600 million aggregate principal amount of additional 5.875% senior secured notes due 2032 in a private offering (the New 2032 Notes).
This marks a $100 million increase from a previously announced offering size.
The New 2032 Notes will reportedly be issued as additional notes under the indenture governing the outstanding $600 million in aggregate principal amount of the Company’s 5.875% senior secured notes due 2032 issued on September 19, 2024 (the Existing 2032 Notes).
According to Ryan Specialty, the New 2032 Notes were priced at 99.500% of par, with the sale of the New 2032 Notes expected to be completed on December 9, 2024, subject to customary closing conditions.
The firm also stated that the Existing 2032 Notes are, and the New 2032 Notes will be, jointly and severally, unconditionally guaranteed on a senior secured basis by each of Ryan Specialty, LLC’s existing and future wholly owned subsidiaries that guarantee its obligations under its $400 million in aggregate principal amount of 4.375% Senior Secured Notes due 2030 (the Existing 2030 Notes) and its credit agreement.
The Existing 2030 Notes and Existing 2032 Notes are not, and the New 2032 Notes will not be, guaranteed by Ryan Specialty.
Meanwhile, subject to certain exceptions, the Existing 2032 Notes are, and the New 2032 Notes will be, secured on a first-lien basis by substantially all of the assets that secure Ryan Specialty, LLC’s Existing 2030 Notes and its obligations under the credit agreement, including the obligations relating to the revolving credit facility under the credit agreement.
The firm explained that it will use the net proceeds from this offering for future acquisition opportunities and investments consistent with its strategy, in addition to general corporate purposes, and to pay fees and expenses related to this offering.
Ryan Ryan Specialty also suggested that it may use some of the net proceeds to temporarily repay up to $400 million of outstanding borrowings under its revolving credit facility that were used to fund a portion of the $450 million acquisition of Innovisk Capital Partners.
