Affirmative Insurance to pay down $72 million of senior secured loan

By Marisa Wong

Madison, Wis., Sept. 17 - Affirmative Insurance Holdings, Inc. said it plans to pay down about $72 million of the $119 million current outstanding debt under its senior credit agreement using proceeds from the sale of its retail agency business to insurance distributor Confie Seguros.

The company also announced that it entered into a commitment letter for a $31 million senior secured term loan facility due Nov. 30, 2014 and a $16 million subordinated secured term loan facility due June 30, 2015.

Fortress Credit Corp. will participate in both facilities, and an affiliate of J.C. Flowers & Co. LLC and majority shareholder New Affirmative LLC will participate in the subordinated secured term loan.

The new financing is intended to completely replace the company's existing senior secured loan facility and is expected to close when the retail sale closes.

Affirmative Insurance is an Addison, Texas, producer and provider of personal non-standard automobile insurance policies to individual consumers.

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