Proceeds will increase statutory capital, enable additional policies
By Toni Weeks
San Luis Obispo, Calif., May 23 - Heritage Insurance Holdings, Inc. priced its $66 million initial public offering of common shares.
The company is selling 6 million common shares with a 30-day greenshoe of 900,000 additional shares at $11.00 per share.
Citigroup Global Markets Inc. is the bookrunning manager. SunTrust Robinson Humphrey, Inc. and Sandler O'Neill + Partners, LP are the joint lead managers.
Proceeds will be used to increase statutory capital, write additional policies and fund collateralized reinsurance through subsidiary Osprey Re Ltd. Any remaining proceeds will be used to fund the company's growth and for general corporate purposes.
The company also said that Ananke Ltd. has agreed to purchase $10 million of Heritage common stock in a separate private placement concurrent with the public offering and at the same price.
The Clearwater, Fla.-based property and casualty insurance holding company intends to list its common stock on the New York Stock Exchange under the symbol "HRTG."
| Issuer: | Heritage Insurance Holdings, Inc.
|
| Issue: | Common shares
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| Amount: | $66 million
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| Greenshoe: | $9.9 million
|
| Shares: | 6 million
|
| Price: | $11.00 per share
|
| Bookrunner: | Citigroup Global Markets Inc.
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| Joint lead managers: | SunTrust Robinson Humphrey, Inc. and Sandler O'Neill + Partners, LP
|
| Co-managers: | Dowling & Partners Securities LLC, JMP Securities LLC and Willis Securities, Inc.
|
| Pricing date: | May 23
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| Stock symbol: | NYSE: HRTG (beginning May 23)
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