By Devika Patel
Knoxville, Tenn., Dec. 19 – Federated National Holding Co. plans to sell $25 million of 10-year floating-rate senior unsecured notes in a private placement, according to a press release.
The notes bear interest at Libor plus 700 basis points.
The notes may be redeemed in whole or in part at 102 in the first two years, 101 in years three through five and at par after year five.
Proceeds will be used to purchase interests in Monarch Delaware Holdings LLC and repay the related $5 million debt, to repurchase company common shares and for general corporate purposes.
The company may also sell an additional tranche of senior notes.
The insurance holding company is based in Sunrise, Fla.
| Issuer: | Federated National Holding Co.
|
| Issue: | Senior unsecured notes
|
| Amount: | $25 million
|
| Maturity: | 10 years
|
| Coupon: | Libor plus 700 bps
|
| Call: | At 102 in the first two years, 101 in years three through five and at par after year five
|
| Announcement date: | Dec. 19
|
| Settlement date: | Dec. 31
|
| Distribution: | Private placement
|
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