Heritage Insurance to raise $125 million via convertible deal to fund NBIC acquisition

By Stephanie N. Rotondo

Seattle, Aug. 9 – Heritage Insurance Holdings Inc. plans to conduct a $125 million offering of convertible notes in connection with its planned merger with NBIC Holdings Inc., the company said in an 8-K filed with the Securities and Exchange Commission on Wednesday.

Heritage is buying NBIC for $210 million. That will consist of proceeds from the convertible offering, as well as $85 million of cash on hand.

If the convertible deal is unsuccessful, Heritage must find alternative financing by the 105th day following the merger agreement date. If other financing is not available, NBIC can terminate the deal and be paid a termination fee of $12.5 million.

Heritage Insurance is a Clearwater, Fla.-based reinsurance company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.