Meadowbrook Insurance Group Inc. said it is $15 million short ofthe $100 million it needs to finance the previously announcedacquisition of ProCentury.

The Southfield, Mich.-based insurer announced in late Februaryan agreement with ProCentury Corp. to acquire the underwriter in acombination cash and stock transaction with a total worth of $273million (see NU Online, Feb. 21).

Meadowbrook said it has financing commitments totaling $85million to its proposed $100 million senior credit facilities. Thecarrier said the deal is being arranged by Banc of AmericaSecurities LLC. The commitments are from Bank of America, J.P.Morgan Chase Bank and KeyBank. The balance of the financing isexpected to be completed from additional lenders in mid-July.

Meadowbrook said the proposed credit facilities include a $65million term loan facility, which is expected to be fully funded atclosing, and a $35 million revolving credit facility, which isexpected to be partially funded at closing.

The deal is still expected to be completed during the thirdquarter of the year, Meadowbrook added.

The company said it intends to utilize approximately $77 millionin proceeds from the credit facilities, along with available cash,to finance the cash portion of the merger with ProCenturyCorporation.

"We appreciate the commitments we have received to date and areconfident we will receive commitments for the remaining $15 millionwithin the expected timeframe," said Meadowbrook President andChief Executive Officer Robert S. Cubbin in a statement.

He added, "We are pleased with how Banc of America Securitieshas been managing the process and look forward to finalizing thecredit facility within the next several weeks and closing on themerger transaction as soon as all necessary shareholder andregulatory approvals are obtained."