Southfield, Mich.-based Meadowbrook Insurance Group Inc. announced today that the Company has raised approximately $10 million at the holding company level, in a trust preferred
pooled transaction.
The securities, which are classified as long-term debt, have a floating rate equal to the three month LIBOR plus 405 basis points and mature in 30 years. The securities can be called by the issuer after five years from the date of issuance.
The funds will be used to support future premium growth through contributions to insurance carrier subsidiaries’ surplus, share repurchases, and other general corporate purposes.
“The proceeds raised in this transaction will support future controlled growth, as we capitalize on the current favorable hard market pricing environment,” CEO Robert S. Cubbin said in a statement.
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