Goosehead Insurance, Inc. has recently completed a significant financial deal, securing a $300 million term loan B and a $75 million revolving credit facility. This new term loan will bear interest at a rate of SOFR plus 3.50% and is set to mature on January 8, 2032. The company intends to use the proceeds from this loan to retire its existing $93 million term loan, as well as to facilitate a one-time special dividend and cover general corporate purposes.
In light of this development, Goosehead Financial, LLC has declared a special distribution of $175 million payable in cash on January 31, 2025. Moreover, the company's board of directors has approved a one-time special cash dividend of $5.91 per share of Class A common stock. Of this special dividend, $1.22 will be funded by prior tax distributions from Goosehead Financial, LLC, while the remaining $4.69 will be funded by cash received from the distribution by the same subsidiary.
These financial moves come as Goosehead continues to position itself as a rapidly growing and innovative independent personal lines insurance agency. The company, which represents over 150 insurance companies that underwrite personal and commercial lines, is focused on offering broad product choice and a world-class service experience to its customers. As a result of these announcements, the company's shares have moved -3.0% on the market, and are now trading at a price of $100.57. Check out the company's full 8-K submission here.
