Liberty Firm publicizes $340 million refinancing transaction

Liberty Firm Insurance coverage Brokers has introduced the profitable completion of a $340 million refinancing transaction on July 31. The providing obtained overwhelming assist from the banking neighborhood and was oversubscribed, the corporate stated.

The refinancing transaction features a $30 million revolving credit score facility, a $180 million time period mortgage, and a $130 million delayed-draw time period mortgage. These funds will likely be used to refinance Liberty’s present debt, positioning the corporate for long-term progress alternatives. J.P. Morgan, Fifth Third Financial institution, and Royal Financial institution of Canada acted as joint lead arrangers, with J.P. Morgan serving as the executive agent. Financial institution of America, Citibank, TD Financial institution, and InsurBanc are additionally lenders within the facility.

Main the discussions on behalf of Liberty have been Bernadetta Scholz, the corporate’s CFO, and Invoice Johnson, Liberty’s founder, chairman, and CEO.

The oversubscription of the providing underscores the monetary neighborhood’s confidence in Liberty’s excellent efficiency and strategic route, Scholz stated.

“Liberty’s providing was oversubscribed in at this time’s difficult credit score atmosphere and that could be a sturdy demonstration of the market’s confidence in Liberty’s enterprise, trajectory and the exceptional natural and inorganic progress that our group has skilled over the previous few years,” she stated.

In 2022, Liberty achieved an natural progress fee of 47% and accomplished 37 acquisitions. These achievements contributed to a considerable enhance in income, from $54 million to $149 million, all year long, the corporate stated. Liberty’s EBITDA to debt leverage remained at a low 3.5x, permitting the corporate to keep up a price of capital on the decrease finish of the spectrum. This advantageous place is especially helpful within the present rate of interest atmosphere, as Liberty continues to put money into and develop its enterprise operations.

Along with using the capital for mergers and acquisitions, Liberty intends to additional improve its sources to drive natural progress by its follow teams and business specializations. The corporate goals to develop its MGA/program choices, worker profit and human capital administration sources, threat administration providers, and different strategic initiatives.

“We’re grateful for the super assist prolonged by the banking neighborhood to our enterprise,” Johnson stated. “I stay up for persevering with to guide our distinctive workforce of colleagues as we drive Liberty’s progress into the longer term. Our success is constructed on the inspiration of our distinctive tradition, mission, and values together with our ever-growing sources, and collaborative and entrepreneurial atmosphere.”

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