Michigan-based Meadowbrook Insurance Group, Inc. has completed an offering of 18.5 million additional shares of newly issued common stock at $3.10 per share. The gross proceeds of the offering are $57,350,000. The underwriters have 30 days to exercise an additional 15 percent over-allotment. The net proceeds will be utilized to contribute additional surplus to its insurance company subsidiaries, to repay a portion of the company’s bank debt, to contribute additional surplus to its insurance company subsidiaries, and for general corporate purposes.
“The additional capital will allow us to strengthen our balance sheet, selectively underwrite our specialty business, and improve the ratings of our insurance company subsidiaries,” Meadowbrook chairman Merton Segal commented.
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