Universal Insurance Holdings Completes Private Placement of $100M of Senior Unsecured Notes due 2026 to Support Growth
24 November 2021 - 8:15AM
Business Wire
Universal Insurance Holdings (NYSE: UVE) (the “Company”)
announced today that it has completed an upsized and oversubscribed
private placement of $100 million aggregate principal amount of
5.625% senior unsecured notes due 2026 (the "Notes") to certain
institutional accredited investors and qualified institutional
buyers.
The Company intends to use the net proceeds from this private
placement for general corporate purposes, including growth capital
as primary rate increases continue to earn through the Company’s
book of business.
“We are very pleased to have completed this private placement to
further our growth and to optimize our cost of capital, with strong
demand from the top-tier investor community. We look forward to
demonstrating continued execution on our multi-year strategic
priorities, including disciplined growth in opportune markets and
continued innovation in our services businesses, including our
direct-to-consumer digital agency Clovered.com,” said Stephen J.
Donaghy, Chief Executive Officer. “I would also like to thank the
Universal team for their process management, Piper Sandler &
Co. for their execution, and Gibson, Dunn & Crutcher LLP and
Mayer Brown LLP for their guidance.”
Piper Sandler & Co. served as sole placement agent for the
private placement. Gibson, Dunn & Crutcher LLP served as legal
counsel to the Company, and Mayer Brown LLP served as counsel to
the placement agent in connection with the private placement.
The Notes have not been registered under the Securities Act, or
any state securities laws and may not be offered or sold in the
United States absent registration or an applicable exemption from
registration requirements. In connection with the issuance and sale
of the Notes, the Company entered into a registration rights
agreement with each of the purchasers of the Notes pursuant to
which the Company has agreed to take certain actions to provide for
the exchange of the Notes for notes that are registered under the
Securities Act of 1933, as amended (the “Securities Act”), with
substantially the same terms as the Notes. This press release is
for informational purposes only and does not constitute an offer to
sell or the solicitation of an offer to buy any of the senior notes
or any other securities, nor will there be any offer, solicitation
or sale of the senior notes or any other securities, in any state
or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. The Company has
offered and sold the Notes only to qualified institutional buyers
(as defined in Rule 144A under the Securities Act) and
institutional accredited investors (as defined in Rule 501 under
the Securities Act) in reliance upon the exemption under Section
4(a)(2) of the Securities Act and the provisions of Rule 506 of
Regulation D promulgated thereunder.
About Universal Insurance Holdings, Inc.
Universal Insurance Holdings (UVE) is a holding company offering
property and casualty insurance and value-added insurance services.
We develop, market, and write insurance products for consumers
predominantly in the personal residential homeowners lines of
business and perform substantially all other insurance-related
services for our primary insurance entities, including risk
management, claims management and distribution. We sell insurance
products through both our appointed independent agents and through
our direct online distribution channels in the United States across
19 states (primarily Florida). Learn more at
UniversalInsuranceHoldings.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20211123006122/en/
Investor Relations Contact: Rob Luther, 954-892-6487 VP,
Corporate Development, Strategy & IR
rluther@universalproperty.com
Media Relations Contact: Andy Brimmer / Mahmoud Siddig,
212-355-4449 Joele Frank, Wilkinson Brimmer Katcher
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