All material subject to strictly enforced copyright laws. © 2021 Inside P&C is part of Euromoney Institutional Investor PLC.
Accessibility | Terms & Conditions | Privacy Policy | Modern Slavery Act | Cookies | Subscription Terms & Conditions

Core Specialty secures $300mn revolver

Core Specialty logo Cincinnati 2.jpg

Core Specialty Insurance has entered a new revolving credit facility with three banks, including BMO Harris Bank serving as administrative agent.

The credit agreement provides for a $300mn unsecured revolver and allows for an additional $100mn of capacity, subject to customary terms and conditions. The facility matures on October 14, 2024 and includes two one-year extension options if relevant lenders agree.

Proceeds from the new loan will be used for general corporate purposes, the company said.

The carrier launched in November 2020 on the closing of the purchase and recapitalization of StarStone with Jeff Consolino as CEO and Ed Noonan as executive chairman.

In April, Core Specialty entered a partnership with Howden-owned MGA Dual Commercial to provide primary and excess professional liability and struck its first M&A deal with an agreement to add Lancer Financial Group.

The transaction brought Core Specialty’s equity capital to more than $1bn, after launching with $900mn. The combined business was set to employ around 550 people.

BMO Capital Markets, Fifth Third Bank, National Association and JPMorgan Chase acted as joint lead arrangers and joint book runners for Core’s new lending facility.

Amounts under the credit facility bear interest at a variable rate, which ranges from Libor plus 1.00% to 1.50% depending on the company's financial strength rating determined by AM Best.

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree