CHICAGO,
IL, Nov. 17, 2022 /PRNewswire/ -
(NYSE: KFS) Kingsway Financial Services Inc.
("Kingsway" or the "Company") today announced the successful
completion of an amendment to its October 1,
2021 credit agreement with AvidBank, resulting in additional
borrowing of $6 million and a
commensurate distribution in cash to Kingsway.
"As we indicated in our CSuite acquisition announcement
last week, we were in the process of completing this financing but
felt it was important to close the transaction before having the
financing completed," said Kingsway
President and CEO, J.T.
Fitzgerald. "With this transaction and the financing now in
place, we have achieved our target combined capital structure for
Ravix and CSuite."
Ravix Acquisition LLC, Ravix Financial, Inc.
(collectively "Ravix"), and CSuite Financial Partners, LLC,
all wholly-owned subsidiaries of Kingsway, entered into an
amendment to borrow an additional $6
million in the form of a term loan (the "Loan"). The Loan
has a variable interest rate equal to the Prime Rate plus 0.75%.
There is no floor for the interest rate. The Loan requires monthly
principal and interest payments and matures on November 16, 2028.
Ravix was the borrower under the original credit agreement
with AvidBank, with an outstanding balance of $5.45 million as of September 30, 2022. With this amendment, the
combined debt that is secured by Ravix and CSuite is now
approximately $11.4
million.
About the
Company
Kingsway is a holding company that owns or controls
subsidiaries primarily in the extended warranty, business services,
asset management and real estate industries. The common shares of
Kingsway are listed on the New York Stock Exchange under the
trading symbol "KFS."
Forward-Looking
Statements
This press release and/or Shareholder Letter may include
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 that are not historical facts, and involve
risks and uncertainties that could cause actual results to differ
materially from those expected and projected. Words such as
"expects," "believes," "anticipates," "intends," "estimates,"
"seeks" and variations and similar words and expressions are
intended to identify such forward-looking statements; however, the
absence of any such words does not mean that a statement is a not a
forward-looking statement. Such forward-looking statements relate
to future events or future performance, but reflect Kingsway
management's current beliefs, based on information currently
available. A number of factors could cause actual events,
performance or results to differ materially from the events,
performance and results discussed in the forward-looking
statements, including as a result of the COVID 19 pandemic. For
information identifying important factors that could cause actual
results to differ materially from those anticipated in the
forward-looking statements, please refer to the section entitled
"Risk Factors" in the Company's 2021 Annual Report on Form 10-K and
subsequent Form 10-Qs and Form 8-Ks filed with the Securities and
Exchange Commission. Except as expressly required by applicable
securities law, the Company disclaims any intention or obligation
to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise.
Additional
Information
Additional information about Kingsway, including a copy of
its Annual Reports can be accessed on the EDGAR section of the U.S.
Securities and Exchange Commission's website at www.sec.gov, on the
Canadian Securities Administrators' website at
www.sedar.com, or through the Company's website
at www.kingsway-financial.com.
SOURCE Kingsway Financial Services Inc.