Alabama-based Infinity Property and Casualty Corporation, a provider of personal automobile insurance with an emphasis on nonstandard auto insurance, announced that the underwriters of its recent secondary offering have exercised their right to purchase an additional 170,829 shares of common stock, pursuant to the over-allotment option granted to the underwriters in connection with the offering.
The 170,829 shares are being sold by the company and net proceeds to Infinity will be approximately $5.0 million. Fifty percent of the proceeds from the sale of shares will be used to repay debt under Infinity’s term loan. The remaining proceeds will be used for general corporate purposes. The 7,850,465 shares of Infinity common stock sold in the secondary offering were sold by American Financial Group, Inc. (“AFG”) and Infinity did not receive any of the proceeds from the sale of shares by AFG. The secondary offering represented all of AFG’s remaining shares in Infinity.
Credit Suisse First Boston, Merrill Lynch & Co. and UBS Investment Bank acted as joint book-running managers for the offering, with Banc of America Securities LLC, Bear, Stearns & Co. Inc. and Morgan Keegan & Company, Inc. acting as co-managing underwriters.
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