Kingstone Announces Completion of Debt Refinancing
15 Dicembre 2022 - 10:15PM
Business Wire
Outstanding Borrowing Debt Reduced by $10
Million
Kingstone Companies, Inc. (Nasdaq:KINS) (the "Company" or
"Kingstone"), a Northeast regional property and casualty insurance
holding company, announced today that it has completed the
refinancing of its $30.0 million of outstanding 5.50% Senior Notes
due on December 30, 2022 (the “2022 Notes”).
Pursuant to its previously disclosed Note and Warrant Exchange
Agreement, Kingstone issued to the exchanging noteholders new 12.0%
Senior Notes due December 30, 2024 in the aggregate principal
amount of $19.95 million, along with cash and warrants. Kingstone
will fund the amount outstanding on the unexchanged 2022 Notes at
maturity.
“We are pleased to have successfully closed this bond exchange,
retiring a third of our debt as we embark on this next chapter for
Kingstone,” said Barry Goldstein, Kingstone's Chief Executive
Officer.
“As we head into 2023, this refinancing strengthens our balance
sheet and ensures that Kingstone is well positioned for the
future,” said Meryl Golden, Kingstone's Chief Operating Officer.
“We appreciate the support from the investment community,
especially in the current macro-environment, and remain
relentlessly focused on continuing to execute on our strategy for
the benefit of our stakeholders.”
Piper Sandler served as the Company’s financial advisor and
private placement agent in connection with the debt refinancing
transaction.
About Kingstone Companies,
Inc.
Kingstone is a northeast regional property and casualty
insurance holding company whose principal operating subsidiary is
Kingstone Insurance Company ("KICO"). KICO is a New York domiciled
carrier writing business through retail and wholesale agents and
brokers. KICO offers primarily personal lines insurance products in
New York, New Jersey, Rhode Island, Massachusetts, and Connecticut.
Kingstone is also licensed in Pennsylvania, New Hampshire, and
Maine.
Forward-Looking
Statements
Statements in this press release may contain "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of
historical facts, may be forward-looking statements. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. These
statements involve risks and uncertainties that could cause actual
results to differ materially from those included in forward-looking
statements due to a variety of factors. For more details on factors
that could affect expectations, see Part I, Item 1A of our Annual
Report on Form 10-K for the year ended December 31, 2021 filed with
the Securities and Exchange Commission under "Factors That May
Affect Future Results and Financial Condition" and Part I, Item 2
and Part II, Item 1A of our Quarterly Report on Form 10-Q for the
period ended September 30, 2022 to be filed with the Securities and
Exchange Commission. These risks and uncertainties include, without
limitation, the following:
- As a property and casualty insurer, we may face significant
losses from catastrophes and severe weather events.
- Unanticipated increases in the severity or frequency of claims
may adversely affect our operating results and financial
condition.
- We are exposed to significant financial and capital markets
risk which may adversely affect our results of operations,
financial condition and liquidity, and our net investment income
can vary from period to period.
- The insurance industry is subject to extensive regulation that
may affect our operating costs and limit the growth of our
business, and changes within this regulatory environment may
adversely affect our operating costs and limit the growth of our
business.
- Changing climate conditions may adversely affect our financial
condition, profitability or cash flows.
- Because a significant portion of our revenue is currently
derived from sources located in New York, our business may be
adversely affected by conditions in such state.
- We are highly dependent on a relatively small number of
insurance brokers for a large portion of our revenues.
- Actual claims incurred may exceed current reserves established
for claims, which may adversely affect our operating results and
financial condition.
- We rely on our information technology and telecommunication
systems, and the failure of these systems could materially and
adversely affect our business.
Kingstone undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
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Arielle Rothstein / Kaitlin Kikalo Joele Frank, Wilkinson
Brimmer Katcher (212) 355-4449
Grafico Azioni Kingstone Companies (NASDAQ:KINS)
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Grafico Azioni Kingstone Companies (NASDAQ:KINS)
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