Reinsurance News

Universal places $100m of senior notes to support growth

24th November 2021 - Author: Matt Sheehan

Florida headquartered and expansive primary insurance company, Universal Insurance Holdings, has completed an upsized and oversubscribed private placement of $100 million aggregate principal amount of 5.625% senior unsecured notes to support its growth ambitions.

universal-insurance-holdings-logoThe notes, due 2026, were placed with institutional accredited investors and qualified institutional buyers.

Universal intends to use the net proceeds from this private placement for general corporate purposes, including growth capital as primary rate increases continue to earn through its book of business.

“We are very pleased to have completed this private placement to further our growth and to optimize our cost of capital, with strong demand from the top-tier investor community,” said Universal CEO Stephen J. Donaghy.

“We look forward to demonstrating continued execution on our multi-year strategic priorities, including disciplined growth in opportune markets and continued innovation in our services businesses, including our direct-to-consumer digital agency,” Donaghy added. “I would also like to thank the Universal team for their process management, Piper Sandler & Co. for their execution, and Gibson, Dunn & Crutcher LLP and Mayer Brown LLP for their guidance.”

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Piper Sandler & Co. served as sole placement agent for the private placement. Gibson, Dunn & Crutcher LLP served as legal counsel to the Company, and Mayer Brown LLP served as counsel to the placement agent in connection with the private placement.

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