Fortegra extends revolver, increases it to $100 million, cuts pricing

By Angela McDaniels

Tacoma, Wash., April 16 - Fortegra Financial Corp. and LOTS Intermediate Co. amended their credit agreement, increasing the revolving credit facility to $100 million from $75 million and extending it by two years to Aug. 2, 2019.

The amendment also reduced the interest rate margin on revolving loans by 35 basis points for each pricing level and reduced the unused line fee by 5 bps for each pricing level, according to an 8-K filing with the Securities and Exchange Commission.

Following the change, the interest rate is Libor plus 165 bps to 265 bps, and the commitment fee is 20 bps to 40 bps.

Finally, the amendment added South Bay Financial Services, LLC, an indirect subsidiary of the Fortegra, as a guarantor.

The credit agreement originally had a $50 million term loan in addition to the revolver, but the term loan has since been repaid in full.

The amendment was made on Friday. The company paid a fee equal to 0.15% of each lender's revolving commitment prior to the amendment and 0.25% of each lender's increase in revolving commitment.

Wells Fargo Bank, NA is the administrative agent, swingline lender and issuing lender. Wells Fargo Securities, LLC is the bookrunner and joint lead arranger. Synovus Bank is the joint lead arranger and syndication agent.

Fortegra is a Jacksonville, Fla.-based company that provides insurance services to other businesses.

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