Canadian commercial insurance brokerage Navacord is on a roll, revealing today that it has completed a CA$1.05 billion financing deal.
According to a Press release, this transaction gives Navacord more capacity to continue pursuing mergers and acquisitions, as well as other ambitious strategic growth objectives, which include:
“We are very pleased to announce this financing event, and we would like to thank our existing and new lenders for their support,” said Shawn DeSantis, co-founder, president, and CEO of Navacord. “The enhanced capacity and flexibility this transaction provides are testament to the resiliency and growth of our business and the future opportunities before us.”
The financing deal was executed by Navacord management and private equity firm Madison Dearborn Partners (MDP). TD Securities is acting as administrative agent on the revolving credit facility and first lien term loan, while the Bank of Montreal is acting as administrative agent on the second lien term loan.
The terms of the completed transaction dictate that Navacord will use the proceeds from new first and second lien term loans to replace its previous term loan and other debt, noted the Press release. Additionally, besides using the funds for M&A opportunities in the near-term and other growth activities, Navacord will also return capital to its employee shareholders.
“We look forward to continuing to build our business in partnership with our shareholders and lenders, and in service to our clients and underwriter relationships,” added T. Marshall Sadd, Navacord’s co-founder and executive chairman. “Navacord is focused on building the ‘Great Canadian Brokerage,’ and this transaction positions us well to execute that plan over the coming years.”
