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Kingstone Announces Exchange Agreement for Debt Refinancing
KINGSTON, N.Y.--(BUSINESS WIRE)-- Kingstone Companies, Inc. (Nasdaq:KINS) (the "Company" or "Kingstone"), a Northeast regional property and casualty
About this update from Kingstone Companies, Inc
[{"type":"text","content":" KINGSTON, N.Y.--(BUSINESS WIRE)--\nKingstone Companies, Inc. (Nasdaq:KINS) (the \"Company\" or \"Kingstone\"), a Northeast regional property and casualty insurance holding company, announced today that it has entered into a Note and Warrant Exchange Agreement (the “Exchange Agreement”) with several holders (the “Exchanging Noteholders”) to refinance its outstanding 5.50% Senior Notes due on December 30, 2022 (the “Existing Notes”). The Exchanging Noteholders hold approximately $21.55 million principal amount of the Company’s outstanding $30 million principal amount of Existing Notes.\n\nPursuant to the Exchange Agreement, Kingstone will issue to the Exchanging Noteholders, in exchange for their Existing Notes, new 12.0% Senior Notes due December 30, 2024 in the aggregate principal amount of $19.95 million, along with cash totaling approximately $1.6 million and three-year warrants for the purchase of approximately 970,000 shares of common stock of the Company. The exchange is scheduled to close on December 15, 2022, and Kingstone will fund the amount outstanding on the Existing Notes on their maturity date.\n\n“We are pleased to have entered into this debt refinancing agreement, which will strengthen Kingstone’s balance sheet and extend our nearest debt maturity to December 30, 2024,” said Barry Goldstein, Kingstone's Chief Executive Officer. “This milestone represents an important vote of confidence in Kingstone on behalf of the investment community and will enable us to fully focus on our key initiatives. It’s clear that our Kingstone 2.0 strategy is taking hold, and as a team we’re focused on accelerating this progress as we work to drive enhanced value for our stockholders.”\n\n“Our team remains focused on executing with discipline in order to better select, underwrite, price, and manage our risks through the current macro environment,\" said Meryl Golden, Kingstone's Chief Operating Officer. “This refinancing will position us to best deliver on these commitments, and we look forward to leveraging Kingstone’s enhanced financial flexibility to the benefit of the stakeholders we serve.\"\n\nAbout Kingstone Companies, Inc.\n\nKingstone is a northeast regional property and casualty insurance holding company whose principal operating subsidiary is Kingstone Insurance Company (\"KICO\"). KICO is a New York domiciled carrier writi...