State National Companies (www.statenational.com), based in Fort Worth, announced it has raised $7.5 million in capital through the issuance of floating rate trust preferred securities by T.B.A. Statutory Trust II.
The funds are available to provide for the growing company’s general corporate purposes and position State National for future acquisitions. The proceeds may also provide additional surplus for its two A.M. Best “A”-rated insurance companies, State National Insurance Company (SNIC) and State National Specialty Insurance Company (SNSIC).
Keefe, Bruyette & Woods Inc., and FTN Financial Capital markets were the agents for the floating rate trust preferred securities issued in connection with a pooled private placement offering. The floating rate trust preferred securities are redeemable at par on or after May 15, 2008 and mature on May 15, 2033.
This is the second issuance this year for the company.
State National’s Program Service Division reports an active first half of the year including the addition of 11 new programs. Some of the new programs are written with corporate and association clients who reinsure the primary layers to their captives. State National Companies looks for programs with strong sponsorship where the captive can provide high levels of collateral to cover the retained risk.
State National Insurance Company, State National Specialty Insurance Company, and Texas-based State & County Mutual Fire Insurance Company are affiliates of privately held State National Companies.
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