Heritage Insurance Holdings Inc. has entered into new credit facilities and is redeeming certain senior notes as part of a reshuffling of its capital structure.
Heritage Insurance entered into new 5-year credit facilities with Regions Bank as administrative agent. The facilities amount to $125 million, consisting of a $75 million term loan and a $50 million revolving credit facility.
The company will use the proceeds of the new facilities, along with other funds, to redeem all $79.5 million principal amount of its outstanding senior secured notes and to repurchase $72.7 million principal amount of its outstanding convertible senior notes.
The convertible note buybacks are being done according to privately negotiated exchange agreements, and transactions are expected to close on or before Dec. 21. Convertible note holders will receive a combination of cash and an aggregate of 3,595,452 of the company's common shares at closing.
Regions Capital Markets, a Regions Bank division, acted as left lead arranger and joint book runner on the new credit facilities. Regions Securities LLC acted as the sole financial adviser regarding exchange transactions. Stonybrook Capital LLC acted as an adviser to Heritage Insurance.