Investment Banking - Atlas Financial Holdings, Inc.

Transactions | Insurance

Client: Atlas Financial Holdings, Inc.
Industry: Insurance
Transaction Type: Senior Notes
Role: Co-Manager

  • Atlas Financial Holdings, Inc. (NASDAQ: AFH) is a specialty property-casualty insurance holding company whose principal operating subsidiaries are: American Country Insurance Company, American Service Insurance Company, Inc., Gateway Insurance Company, Global Liberty Insurance Company of New York, Anchor Group Management, Inc., Plainview Premium Finance Company, Inc., and Plainview Premium Finance Company of California, Inc. Atlas companies are generally rated “B” property-casualty insurance companies by AM Best, writing business for specialty light commercial auto liability risks such as limo, non-emergency paratransit, livery and taxi.
  • AFH had total equity of $127.3 million and generated $177.8 million in revenue for the last twelve months ended December 31, 2016. Its market capitalization prior to the offering was approximately $151 million.
  • On April 26, 2017, AFH issued $25 million of fixed rate senior notes due 2022.
  • The notes bear an interest rate of 6.625% per year. The notes are callable without penalty after three years.
  • Atlas intends to use the net proceeds of this offering, together with cash on hand, for the repayment of $19.4 million in outstanding debt drawn from Atlas’ secured credit facilities (which will then be terminated), repurchases of common stock, supporting organic growth, and potential acquisitions, as well as for general corporate purposes.
  • Boenning served as a co-manager in the offering.