By Sheri Kasprzak
Atlanta, June 16 - Anthony Clark International Insurance Brokers Ltd. said it has raised $25 million in a private placement of a term loan facility.
The loan was purchased by Bridge Healthcare Finance LLC and Bridge Opportunity Finance LLC.
The five-year loan, sold by Anthony Clark on behalf of subsidiary Addison York Insurance Brokers Ltd., bears interest at Prime rate plus 625 basis points, with a rate reduction of 1.5% if the company raises an additional $3 million in an equity financing and 2.5% for $5 million raised in a subsequent equity financing.
The investors also received warrants for 1,439,128 shares, exercisable at C$0.80 each for five years.
The proceeds from the loan will be used to retire existing credit facilities. The remainder will be used to fund future acquisitions.
In other news, Anthony Clark said Mahesh Bhatia has been named its chief financial officer, replacing Shelley Samec.
Based in Calgary, Alta., Anthony Clark is holding company for 23 general insurance brokerage firms.
| Issuer: | Anthony Clark International Insurance Brokers Ltd.
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| Issue: | Term loan
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| Amount: | $25 million
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| Maturity: | Five years
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| Coupon: | Prime rate plus 625 basis points
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| Warrants: | For 1,439,128 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | C$0.80
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| Investors: | Bridge Healthcare Finance LLC and Bridge Opportunity Finance LLC
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| Settlement date: | June 16
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| Stock price: | US$0.55 at close June 13 (last trade)
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