TAMPA, Fla. - The Baldwin Insurance Group Holdings, LLC, a subsidiary of The Baldwin Group (NASDAQ: BRP (NASDAQ:DOOO)), announced its intention to offer $500 million in senior secured notes due 2031, contingent on market conditions and other factors. The notes are to be guaranteed by Baldwin Holdings' material domestic wholly-owned subsidiaries, which are also expected to guarantee the company's new credit facilities.
The issuance of these senior secured notes, which will be guaranteed on a first-priority lien basis by assets of Baldwin Holdings and its guarantors, is part of a broader strategy to refinance existing debt. Specifically, Baldwin Holdings aims to use the net proceeds along with borrowings under a new term loan facility and available cash to repay approximately $996.2 million of its current term loan facility and approximately $351 million of its existing revolving facility debts.
The proposed financial restructuring, including the new credit facilities, is subject to the acquisition of lender commitments and prevailing market conditions, with no assurances provided regarding the completion or terms of the new credit facilities or the notes issuance.
This offering targets qualified institutional buyers under Rule 144A and non-U.S. persons outside the United States under Regulation S, as per the Securities Act of 1933. The notes will not be registered under the Securities Act or state securities laws, and they cannot be sold in the United States without registration or an exemption from registration requirements.
The Baldwin Group, operating under the go-to-market brand name for The Baldwin Insurance Group, Inc., is an independent insurance distribution firm that offers risk management, insurance, and employee benefits services. The company supports over two million clients domestically and internationally.
The announcement contains forward-looking statements which involve risks and uncertainties that could cause actual results to differ materially from those anticipated. The company's filings with the U.S. Securities and Exchange Commission, available on the SEC's website, detail these risks.
This press release clarifies that it is neither an offer to sell nor a solicitation of an offer to buy the notes or other securities. The offering is subject to compliance with securities laws in each jurisdiction.
The information in this article is based on a press release statement from The Baldwin Group.
InvestingPro Insights
In light of The Baldwin Group's (NASDAQ: BRP) recent announcement to offer $500 million in senior secured notes, a look at the company's financial health through InvestingPro's real-time data metrics could provide investors with a clearer picture of its current market position.
With an adjusted market capitalization of $3.3 billion, The Baldwin Group's valuation reflects its standing in the insurance distribution market. Despite a negative P/E ratio of -18.85, indicating that the company is currently not profitable, the PEG ratio of 0.2 suggests that investors expect future earnings growth to come at a bargain.
InvestingPro data also shows a robust revenue growth of 24.25% in the last twelve months as of Q4 2023, which may be a signal of the company's effective market strategies and operational execution. Additionally, the company's gross profit margin stands at 27.43%, which could be indicative of its ability to manage costs relative to its revenue generation.
InvestingPro Tips highlight that The Baldwin Group's Price to Book ratio is 5.88 as of the last twelve months ending Q4 2023, which could imply that the market values the company's assets favorably. Moreover, the company's stock has experienced a 1 Year Price Total Return of 17.87%, reflecting investor confidence over the past year.
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