USI Completes Credit Facility
NU Online News Service, Aug. 12, 12:10 p.m. EDT?Briarcliff Manor, N.Y.-based insurance broker U.S.I. Holdings Corp. said it has completed a $155 million senior secured credit facility with several lending institutions.
The facility includes a $30 million four-year revolving credit facility and a $125 million five-year term loan facility.
USI said it intends to use the proceeds from the term facility to repay all amounts under its previously existing term and revolving credit facility.
Proceeds from the term facility will be used to pay off a portion of existing notes issued in prior acquisitions, to pay expenses related to the closing of the new credit facility and for general corporate purposes. The revolving credit facility will be "untapped" as of the date of issue and will be used for general corporate purposes, including acquisitions, the firm said.
"We believe that the strong positive response of the lending community to participate in this new credit facility is a significant endorsement of the improvement in our operating and financial model," said David L. Eslick, USI's chairman, president and CEO. "Our new credit facility's lower interest rates and more favorable amortization schedules will help strengthen our earnings and available cash flow."
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