Atlas Financial Holdings enters into an agreement with certain senior bondholders regarding a possible extension of the maturity date; Raise up to $ 3 million through funding agreement

CHICAGO–(COMMERCIAL THREAD) –Atlas Financial Holdings, Inc. (OTC: AFHIF) (“we”, “us”, “our”, the “Company” or “Atlas”) announced today that it is pursuing a financial restructuring through an exchange of the Company’s 6.625% senior unsecured notes due April 26, 2022 (the “Notes”) pursuant to an agreement with certain holders tickets which, if successful, for additional financial flexibility in order to continue to pursue its general management agency (MGA) strategy. The deal would allow Atlas to continue a ticket exchange which, if successful, should extend the maturity date of the tickets and provide additional financial flexibility during this important rebuilding period. The Company has secured letters of initial support from seven holders, the largest of which represents more than 50% of the outstanding face value of the Notes and is seeking further support from Noteholders regarding the planned exchange of the Notes. In addition, the completion of the convertible senior secured credit facility is expected to provide significant interim liquidity as we continue to resume and grow our business.

Scott D. Wollney, President and CEO of Atlas, said: “We have worked closely with a number of our most important ticket holders to create what we believe is a fair and equitable proposition that will Atlas to pursue its business plans with the aim of creating value for all stakeholders. The first supports we have received suggest that our main holders are in line with the strategy and objectives of the Company. Our goal has been to successfully transition from a long history as an insurance company to a technology and analytics driven MGA with the ability to deliver EBITDA growth through strategic relationships with partners. at risk. Over the past few months, we have continued to see a substantial growth rate in new quotes and policies issued following the return of drivers to the market in response to continued passenger demand in the public automobile and passenger car segments. carpooling. As noted in our recent second quarter earnings call, current in-force business is only about 5% of what it was in 2018, and we expect the near-term headwinds of drivers subside over time, resulting in a significant increase in demand for the insurance products we offer. We are encouraged that the monthly quotes received for taxi and livery policies continue to be at the highest level seen since the start of the pandemic, with quotes and policies issued in August continuing to exceed previous months. The activities included in today’s announcement give us more time to complete our investment thesis, and we plan to work closely with all of our current note holders and shareholders in the search for a favorable outcome for all parties. ”

The company will continue to extend the maturity of its senior bonds

The Company has worked in recent months to meet the upcoming maturity of its 6.625% senior bonds due April 26, 2022.

On August 31, 2021, Atlas Financial Holdings, Inc. (the “Company”) entered into a Restructuring Support Agreement (the “RSA”) with the holders of approximately 48% of the Notes. Each of such Holders is in favor of a proposed exchange of the Notes. Under the RSA, the exchange of tickets is expected to be completed by March 1, 2022, which will result in a one-for-one ticket exchange with a five-year extension of the stated term and other agreed upon changes, which The Company believes this will enable it to meet its obligations under the new ratings and create value for stakeholders. Holders of additional tickets can join RSA via a membership letter which can be obtained from the Company.

As the Company continued its discussions with noteholders regarding the RSA, Atlas did not make the quarterly interest payment that was due and payable on July 26, 2021, and the 30-day grace period for this payment has expired. expired when the overdue amount has been unpaid on or before August 25, 2021, resulting in an event of default on August 26, 2021 under the Notes. The Company has been in close contact with the Trustee, Wilmington Trust, National Association, and will continue to work with all Noteholders to participate in the proposed exchange of Notes.

The company obtains financing for its operating needs

On September 1, 2021, the Company entered into a deferred drawing senior guaranteed convertible credit agreement. The proceeds of this facility may be used to fund the outstanding exchange of the Notes and to pay for certain normal operating expenses. The facility offers a total available borrowing limit of $ 3 million, consisting of an initial drawdown of $ 2 million shortly after closing and up to $ 1 million of deferred draws, subject to terms. The interest rate is 12% per annum and can be paid in cash or in kind. The term of the facility is 24 months and the amounts borrowed may be prepaid at the discretion of the Company without penalty. The borrowed capital may be converted at any time into common shares of the Company at the discretion of a lender at $ 0.35 per share. As a right of establishment, 2,750,000 ordinary shares were issued upon signing of the final documents relating to this facility. Further terms and conditions are set out in the final agreements filed with our current report on Form 8-K.

Mr. Wollney concluded, “We look forward to continuing to provide shareholders and noteholders with regular updates on our growth prospects and are very pleased to offer a proposed solution that we believe will enable the Company to continue to grow. strategy.”

Additional information

The Company will provide further details in a current report on Form 8-K filed with the Securities and Exchange Commission.

About Atlas

Atlas’s core business is commercial automobile insurance in the United States, with a niche market orientation and a focus on insurance for the “light” commercial automobile sector, including taxis, non-urgent adapted transport, limousines / livery (including full-time company driver transport network) and company automobile. Atlas’s specialized infrastructure is designed to leverage analytics, expertise and technology to efficiently and cost-effectively deliver insurance solutions to independent contractors, owner-operators and others. small accounts.

The Company’s strategy is focused on the operation of its general management agency (“AGMI”) operation and its digital insuretech platform (“optOn”). For more information about Atlas, please visit, and

Forward-looking statements

This press release includes forward-looking statements regarding Atlas and its subsidiaries and insurance businesses. These statements are based on the current expectations of the management of each entity. The words “anticipate”, “expect”, “believe”, “power”, “should”, “estimate”, “project”, “prospects”, “anticipate” or similar words are used to identify these forward-looking information. The forward-looking events and circumstances described in this press release may not occur and could differ materially due to known and unknown risk factors and uncertainties affecting the companies, including risks relating to the insurance industry, economic factors. and the general stock markets and risk factors discussed in the “Risk Factors” section of the Company’s 2020 Annual Report on Form 10-K. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Atlas and its subsidiaries assume no obligation to publicly update or revise any forward-looking statements. whether as a result of new information, future events, or otherwise.

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