Chicago, Nov. 23 – Universal Insurance Holdings Inc. privately placed $100 million of 5 5/8% senior notes due Nov. 30, 2026, according to an 8-K filed with the Securities and Exchange Commission.
The company has agreed to take certain actions to provide for the exchange of the notes so that the notes will be registered under the Securities Act.
Starting Nov. 30, 2023, the notes are redeemable at 102.8125 and then after Nov. 30, 2023 at 101.40625. Starting Nov. 30, 2024, the notes can be redeemed at par plus interest.
The interest rate can be adjusted if the rating on the notes changes. The company will likely use Egan-Jones for rating the notes.
The company must maintain enough cash on hand for at least 12 months of interest payments.
Piper Sandler & Co. was the placement agent.
Proceeds will be used for general corporate purposes, including growth capital.
Universal is a Fort Lauderdale, Fla., insurance holding company.
| Issuer: | Universal Insurance Holdings Inc.
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| Amount: | $100 million
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| Issue: | Senior notes
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| Maturity: | Nov. 30, 2026
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| Bookrunner: | Piper Sandler & Co.
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| Coupon: | 5 5/8%
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| Call features: | Starting Nov. 30, 2023 at 102.8125, from Nov. 30, 2023 at 101.40625, from Nov. 30, 2024 at par
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| Puts: | Non-putable
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| Settlement date: | Nov. 23
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| Distribution: | Section 4(a)(2) and Rule 506(b) of Regulation D
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