Atlas Financial eyes exchange of 6.625% $25-par notes due 2022

By Wendy Van Sickle

Columbus, Ohio, Sept. 1 – Atlas Financial Holdings, Inc. is pursuing a financial restructuring through an exchange of its 6.625% $25-par senior notes due April 26, 2022 under an agreement with some holders of the notes, according to a news release.

If successful, the company believes the restructuring will allow for additional financial flexibility to continue to pursue its managing general agency strategy.

The agreement would allow Atlas to pursue an exchange of the notes to extend the maturity date and provide additional financial flexibility during a rebuilding period.

The company said it obtained letters of initial support from seven holders, including the largest holder, representing more than 50% of the outstanding par value of the notes and is seeking additional support from noteholders of the planned exchange. In addition, the completion of the convertible senior secured credit facility is expected to provide interim liquidity.

“We worked closely with a number of our largest note holders to create what we believe to be a fair and equitable proposal that will allow Atlas additional runway to pursue its business plans with the objective of creating value for all stakeholders,” Scott D. Wollney, Atlas’ president and chief executive officer, said in the release.

The financial services holding company is based in Elk Grove Village, Ill.

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