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Heritage Insurance Holdings, Inc. (NYSE:HRTG), a property and casualty insurer with a market capitalization of $637 million and an impressive 183% return over the past year, entered into an amended and restated credit agreement on Tuesday with Regions Bank as administrative agent and collateral agent, according to a statement released through a Securities and Exchange Commission filing. According to InvestingPro analysis, the company currently appears to be trading near its Fair Value, with analysts maintaining a consensus buy recommendation.
The new agreement increases the company’s senior secured credit facilities to an aggregate principal amount of up to $200 million, up from $150 million under its previous agreement dated December 14, 2018. The facility includes a revolving credit line of up to $50 million, a term loan of $75 million outstanding as of the agreement date, and a $75 million delayed draw term loan available for permitted acquisitions and investments. The maturity for all facilities was extended to July 2030 from July 2026.
The agreement also reduces the applicable margin for loans. For SOFR-based loans, the margin decreases to a range of 2.50% to 3.00% per annum, down from the previous 2.75% to 3.25% plus a 0.10% credit adjustment spread. For base rate loans, the margin is now 1.50% to 2.00%, compared to the prior 1.75% to 2.25%. These adjustments are based on the company’s consolidated leverage ratio.
The company used net proceeds from the new facility, along with cash on hand, to repay approximately $78 million in principal under the prior credit agreement, including accrued interest, fees, costs, and expenses related to the closing.
The amended agreement also modifies certain financial and negative covenants, providing Heritage Insurance Holdings with additional flexibility, including the ability to sell specified real estate assets in Clearwater, Florida. All other material terms remain unchanged. InvestingPro analysis reveals the company maintains a "GREAT" overall financial health score of 3.26, with additional ProTips available to subscribers regarding the company’s earnings growth potential and profitability metrics.
This information is based on a press release statement filed with the Securities and Exchange Commission.
In other recent news, Heritage Insurance Holdings Inc. reported impressive financial results for the first quarter of 2025. The company significantly exceeded earnings expectations with an earnings per share (EPS) of $0.99, compared to the forecasted $0.33. Despite this strong performance in earnings, the company’s revenue was slightly below projections, coming in at $211.5 million against the expected $214.88 million. These recent developments have drawn attention from investors, although the specific stock price movement is not the focus here. The earnings call highlighted the company’s ability to surpass analyst projections, which is crucial information for stakeholders. As market analysts continue to assess these results, the performance of Heritage Insurance remains a point of interest for the investment community. While there are no recent analyst upgrades or downgrades reported, the financial outcomes have positioned Heritage Insurance prominently in recent discussions.
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