Southfield, Mich.-based Meadowbrook Insurance Group, Inc. announced today it has completed an offering of 5,500,000 additional shares of newly issued common stock at $9.65 per share. The gross proceeds of the offering are $53.1 million. In addition, the underwriters have 30 days to exercise up to an additional 937,500 shares to cover over-allotments, if any.
The net proceeds from the offering will be utilized to reduce the balance on the Company’s line of credit, support organic growth within its underwriting operations, fund potential select acquisitions and for other general corporate purposes.
In addition, the company’s Chairman Merton Segal and his family,
sold 750,000 shares of common stock at $9.65 per share. The Company will not receive any proceeds from the sale of the Segal shares. Subsequent to the sale he will retain beneficial ownership of approximately 1.7 million shares, or 5.6 percent In addition, the Segal’s have agreed to not sell any of the remaining shares over the next six months.
Meadowbrook is a risk management organization specializing in alternative risk management solutions for agents, professional/trade associations, and small to medium-sized insureds.
Source: Meadowbrook Insurance Group
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