Patriot National Announces Closing of New Credit Facility and Capital Distribution to Shareholders
Highlights
- Company closes new
$250 million term loan and$30 million revolving credit line with Cerberus Business Finance, an affiliate ofCerberus Capital Management, L.P. - Board of Directors approves a special dividend of
$2.50 per share of common stock - Board of Directors increases existing share repurchase program to
$40 million from$15 million - Company plans to focus on enhancing shareholder value by leveraging robust platform of insurance services and technology solutions and reducing expenses to generate profitable growth
- Board of Directors continues to explore all strategic value creation opportunities
Management Commentary
"In February, our Board of Directors formed a Special Committee to explore all avenues for shareholder value creation including a potential sale of the Company, divesting non-core assets, and other ways to return capital to shareholders," said
"The Board of Directors will continue to evaluate all options for value creation and, at the same time, we are taking decisive action to enhance the value of the Company by driving organic growth in our core insurance services and technology businesses. Our new credit facility with Cerberus significantly enhances our financial flexibility to execute on our plans for enhanced growth and returns in 2017."
Update on Organic Growth Plan
Over the past month,
Return of Capital to Shareholders
Today,
The Board has also approved an expansion of the existing share repurchase program to
Recapitalization
On
The Company fully repaid all outstanding obligations on the former senior secured credit facility upon closing. As of
Conference Call and Webcast
A conference call and audio webcast with analysts and investors will be held on
- Live conference call: 1-844-881-0136 (domestic) or 1-412-317-6745 (international)
- Conference call replay available through
December 14, 2016 : 1-877-344-7529 (domestic) or 1-412-317-0088 (international) - Replay access code: 10095739
- Live and archived webcast: ir.patnat.com
About
Forward Looking Statements
This press release may include statements that may be deemed to be forward-looking statements. Words such as "may," "will," "should," "likely," "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "positioned," "outlook," "Guidance," and similar expressions are used to identify these forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties, and there are important factors that could cause actual results to differ materially from those indicated in these statements, including the potential that organic growth, enhanced returns or cost savings may not materialize. For example, we may not be able to place insurance policies for our clients, our expenses may be higher than we expect, we may have difficulty integrating new acquisitions, new acquisitions may not perform as anticipated, as well as those matters contained in our filings with the
Media and Investor Contacts:
(954) 670-2907
[email protected]
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