Mount Logan Capital Inc. has announced that its wholly-owned subsidiary, MLC US Holdings LLC, has entered into an amendment to its existing credit agreement, increasing the facility by approximately $13 million. This amendment, known as Fourth Amendment, also introduces a pricing step-down mechanism, designed to reduce Mount Logan’s cost of debt as the business continues to perform.
A news release highlighted that the upsized credit facility will provide additional distribution capacity from MLC US Holdings to Mount Logan, facilitating key business initiatives. Proceeds from the increased facility will be used to further invest in Mount Logan’s two core business segments: asset management and insurance. The funds will also support general corporate purposes and cover related transaction fees and expenses.
Under the terms of the Fourth Amendment, the outstanding principal and accrued interest under the credit facility will be payable by August 20, 2027, with potential adjustments in accordance with the credit agreement.
Ted Goldthorpe, CEO and chairman of Mount Logan, expressed satisfaction with the development, saying, “The opportunistic upsize and amendment to our credit facility reflects Mount Logan’s strong financial performance following significant investment into the business. The incremental proceeds provide Mount Logan flexibility to further invest into our two synergistic business segments, asset management and insurance. The transaction provides us additional liquidity for key business initiatives with a clear pathway to reducing our cost of debt as our business continues to perform.”
He also acknowledged the support of the company’s financing partner, stating, “We are incredibly appreciative of our financing partner, who has been critical to driving Mount Logan’s growth story since we established the credit facility in August 2021.”
As part of the credit agreement, MLC US Holdings has granted a security interest in all of its assets to the lenders. Mount Logan has also guaranteed MLC US Holdings’ obligations under the agreement. MLC US Holdings serves as the holding company for Mount Logan’s US asset management operations.
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