1347 Property Insurance Holdings Inc. entered into a $7 million loan agreement and a related commercial note with Hancock Whitney Bank.
The nonrevolving line of credit will expire on Jan. 20, 2020. The loan agreement will have an initial interest rate of 5.25% per annum and will bear an interest rate per annum equivalent to one-month ICE London interbank offered rate, plus a margin of 3.00%.
The line of credit will be repaid in monthly interest-only payments starting Sept. 1 and will be fully repaid at maturity.
The company intends to use the proceeds from the borrowings to provide short-term working capital to its subsidiaries and for general corporate purposes.
