CINCINNATI, Oct. 13, 2021 /PRNewswire/ — Core Specialty Insurance Holdings, Inc. and its subsidiaries («Core Specialty» or the «Company») announced today that the Company entered into a new credit agreement with three banks, including BMO Harris Bank N.A. serving as administrative agent. The credit agreement provides for a $300 million unsecured revolving credit facility and carries an accordion feature allowing for an additional $100 million of capacity, subject to customary terms and conditions (the «Credit Facility»).
The new Credit Facility has a maturity date of October 14, 2024, and includes two one-year extension options to the extent agreed by the relevant lenders. Borrowings under the Credit Facility bear interest at a variable rate, which ranges from LIBOR plus 1.00% to 1.50% depending on the Company’s financial strength rating determined by A.M. Best.
Any borrowings under the new Credit Facility will be used for general corporate purposes; providing flexibility for Core Specialty’s strong balance sheet and continued strategic growth initiatives via organic and inorganic opportunities.
BMO Capital Markets Corp.; Fifth Third Bank, National Association; and JPMorgan Chase Bank, N.A. acted as joint lead arrangers and joint book runners for Core Specialty’s new Credit Facility.
About Core Specialty
Core Specialty offers a diversified range of property and casualty insurance products for small to mid-sized businesses. From underwriting offices spanning the U.S., the Company focuses on niche markets, local distribution, and superior underwriting knowledge, offering traditional as well as innovative insurance solutions to meet the needs of its customers and brokers. Core Specialty is an insurance holding company operating through StarStone Specialty Insurance Company, a U.S. excess and surplus lines insurer, and StarStone National Insurance Company, a U.S. admitted markets insurer. The Company is rated A- (Excellent) by AM Best. For further information about Core Specialty, please visit www.corespecialty.com.
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SOURCE Core Specialty Insurance Holdings