Tiptree’s Fortegra South Bay units enter two-part $75 million revolver

By Wendy Van Sickle

Columbus, Ohio, Oct. 21 – Tiptree Inc. subsidiary Fortegra Financial Corp.’s South Bay Financial Corp. and South Bay Funding LLC subsidiaries entered into a $75 million secured revolving credit agreement on Oct. 16, according to an 8-K filing with the Securities and Exchange Commission.

Fifth Third Bank, NA is the bookrunner, lead arranger and administrative agent.

The credit agreement provides for a $20 million revolver due in 364 days with a $2 million sublimit for swingline loans available to South Bay Financial and a $55 million revolver due in three years with a $5.5 million sublimit available to South Bay Funding, in each case subject to a borrowing base.

Borrowings bear interest at Libor plus 325 basis points. There is an undrawn commitment fee of 25 bps.

Financial convents include a minimum interest coverage ratio of 2.0 to 1.0 and a maximum tangible net worth ratio of 5.0 to 1.0.

Proceeds may be used to refinance existing debt, for capital expenditures, for working capital and other general corporate purposes.

Tiptree is a New York-based company that provides insurance and insurance services, real estate, asset management and specialty finance services.

© 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.