Bowhead Specialty Holdings secures $35 million revolving credit facility

Bowhead Specialty Holdings Inc. (NYSE:BOW) entered into a senior secured revolving credit agreement on November 26 with PNC Bank, National Association, as administrative agent, and a group of lenders, according to a press release statement based on a recent SEC filing.

The agreement establishes a $35 million revolving credit facility. The facility allows Bowhead Specialty Holdings to borrow funds on a revolving basis, including through swing line loans and letters of credit, for general corporate purposes such as working capital, capital expenditures, and refinancing or repaying debt. No borrowings were made on the effective date.

Interest on any revolving loans will be charged at either a Term SOFR-based rate plus a 1.75% margin or an alternate base rate plus a 0.75% margin, at the company’s option. Unutilized commitments under the facility will incur a 0.25% annual fee. Letters of credit will carry a fronting fee of 0.125% per annum of the available amount, as well as a fee equal to the applicable margin for Term SOFR times the average daily undrawn amount. The company is also required to pay customary agency fees.

The revolving credit facility is not subject to amortization and will mature on the earlier of November 26, 2027, or 91 days before the earliest termination date of any material general agency agreement, unless a replacement is arranged as specified in the agreement. The obligations are secured by a first-priority lien on substantially all of Bowhead’s assets, subject to certain exceptions.

Bowhead Specialty Holdings is subject to various covenants under the agreement, including limits on total debt (maximum 35% of total capitalization), requirements for its insurance subsidiaries to maintain a risk-based capital ratio of at least 400% of the authorized control level, and a minimum consolidated net worth formula. The agreement also includes customary restrictions on additional indebtedness, liens, mergers, acquisitions, dividends, share repurchases, and affiliate transactions.

The credit agreement provides for customary events of default, such as nonpayment, covenant breaches, certain events affecting insurance licenses, and bankruptcy or insolvency events.

This information is based on a press release statement included in the company’s recent SEC filing.

In other recent news, Bowhead Specialty Holdings Inc. reported strong financial results for the third quarter of 2025, showcasing significant growth in gross written premiums and adjusted net income. This performance highlights the company’s strategic focus on technology-driven underwriting and disciplined risk selection. Additionally, Bowhead Specialty Holdings completed a public offering of $150 million in 7.750% senior notes due 2030. The proceeds from this offering are intended to support business growth and general corporate purposes. The company issued these unsecured senior notes under an indenture with U.S. Bank Trust Company, National Association, serving as the trustee. Interest on these notes will be paid semi-annually beginning June 1, 2026. Keefe, Bruyette & Woods, Inc. and Piper Sandler & Co. acted as representatives of the underwriters for the transaction.

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