LEHI,
Utah, April 24, 2024 /PRNewswire/ -- PCF
Insurance Services, a top 20 U.S. insurance brokerage, has closed
$400 million in incremental debt
financing led by Blue Owl, a global alternative asset manager that
acted as lead arranger and administrative agent. The financing was
materially oversubscribed and was upsized from $300 million to $400
million in response to strong demand from new and existing
lenders. In addition, the company reduced the margin on the
majority of its debt by 50 basis points, which will represent a
significant annual savings in ongoing interest expense.
"This most recent financing is a testament to the strength of
our team and commitment to growth and will enable us to further
accelerate our M&A strategy," said Felix Morgan, Chief Executive Officer for PCF
Insurance. "As part of PCF's long-term commitment to growth, we
seek to identify and acquire businesses that will benefit from
strong shareholder value and robust shared services offerings along
with access to collaborative, industry-leading professionals."
The deal includes a delayed draw term loan to support M&A
that will be pari passu and mature concurrently with the company's
existing secured credit facilities. PCF Insurance last accessed the
capital markets in July 2023, when it
secured $400 million in incremental
debt financing, which was also led by Blue Owl, and in February 2023 with a $500
million preferred equity investment co-led by Carlyle's
Global Credit platform and private equity firm HGGC. Blue Owl and
Crescent Capital, both of which have existing minority equity
stakes in the business, also participated in the preferred equity
transaction.
"Felix and the management team at PCF Insurance Services
continue to successfully execute on their growth strategy, and we
are pleased to provide the company with additional capital to fund
their long-term plan," said Lukas Spiss, Managing Director at Blue
Owl Capital. "We look forward to seeing what they can accomplish
over the coming years and are excited to continue our partnership."
PCF Insurance was recognized on the Inc. 5000 list of the
fastest-growing private companies in America for the second
consecutive year in 2023. PCF Insurance leverages the industry
knowledge and experience of its more than 4,000 employees across 40
states to provide its highly diversified suite of risk management,
benefits design, and insurance brokerage services. PCF Insurance
strategically slowed M&A efforts in 2023. In 2024, the company
has accelerated both M&A and organic strategies to drive
growth.
About PCF Insurance Services
A top 20 U.S. insurance brokerage headquartered in Lehi, Utah, PCF Insurance Services of the
West, LLC offers a broad array of commercial and personal lines,
life and health, employee benefits, and workers' compensation
solutions. PCF Insurance's operating model and entrepreneurial
environment support its tremendous growth profile, offering its
businesses alignment through equity ownership, enhanced coverage
solutions and capabilities for clients, and shared-services
resources. With more than 4,000 employees across the U.S., PCF
Insurance is a notable leader in the insurance space, ranking #20
on Business Insurance's 2023 Top 100 Brokers and #12
on Insurance Journal's 2023 Top Property/Casualty Agencies.
Visit pcfins.com for more information.
About Blue Owl
Blue Owl (NYSE: OWL) is a leading asset
manager that is redefining alternatives. With over $165 billion in assets under management as of
December 31, 2023, Blue Owl invests
across three multi-strategy platforms: Credit, GP Strategic
Capital, and Real Estate. Anchored by a strong permanent capital
base, Blue Owl provides businesses with private capital solutions
to drive long-term growth and offer institutional and individual
investors differentiated alternative investment opportunities that
aim to deliver strong performance, risk-adjusted returns, and
capital preservation. Together with over 685 experienced
professionals globally, Blue Owl brings the vision and discipline
to create the exceptional. To learn more, visit
www.blueowl.com.
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SOURCE PCF Insurance Services