First Acceptance Corporation, a provider of private passenger non-standard automobile insurance, has acquired certain assets of Insurance Plus Agency II Inc. and Yale International Insurance Agency Inc. These agencies sell private passenger non-standard automobile insurance primarily in the Chicagoland area and were owned and operated under common control.
Under the terms of the transaction, First Acceptance paid a total of $30.0 million in cash for the assets of 73 retail stores that operate, and will continue to operate, under the names Insurance Plus and Yale Insurance. First Acceptance did not acquire any policies in force as part of the transaction and therefore does not believe the acquisition will be accretive to earnings for a period of twelve months.
The transaction was financed through a new $30 million revolving and term loan credit facility with SunTrust Bank as lead bank and with First Bank (Lexington, Tenn.) as participating bank. The facility consists of a $5 million revolving credit facility, and a $25 million term loan facility, both maturing June 30, 2010.
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