United Fire Group, Inc. (UFG) has successfully completed a placement of $70 million aggregate principal senior unsecured 9.0% notes due May 31, 2039, in a private offering with Ares Management Credit Funds as the lead investor. The proceeds from this offering will be used to support anticipated growth and for general corporate purposes.
The company's exclusive financial advisor, Stonybrook Capital, LLC, facilitated this capital raise. Ares Management Credit Funds' managing director, Jeff Hughes, emphasized that the investment aligns with the team's focus on delivering creative and flexible private credit solutions and represents their continued partnership with the insurance industry.
Ares Management's alternative credit strategy, managing approximately $36.5 billion in assets under management as of March 31, 2024, invests across the capital structure and seeks opportunities in specialty finance, lender finance, loan portfolios, equipment leasing, structured products, net lease, cash flow streams, and other asset-focused investments.
The notes were offered and sold in a transaction exempt from the registration requirements of the U.S. Securities Act of 1933, as amended, and in the United States only to qualified institutional buyers and outside the United States to certain non-U.S. persons in offshore transactions.
UFG, founded in 1946 as United Fire & Casualty Company, is engaged in writing property and casualty insurance. The company is represented by approximately 1,000 independent agencies and holds an "A-" (Excellent) rating from A.M. Best Company for members of the United Fire & Casualty Group. As a result of these announcements, the company's shares have moved -0.8% on the market, and are now trading at a price of $21.23. If you want to know more, read the company's complete 8-K report here.
