Business
Root Lowers Cost of Capital Through Refinancing and Announces $75 Million Share Repurchase Program
COLUMBUS, Ohio, May 06, 2026 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the leading technology company in car insurance, today announced it has successfully refinanced its existing debt into a new term loan facility led by The Huntington National Bank. In addition, Root’s board of directors has authorized the company to repurchase up to $75 million of its Class A common stock. Together, these actions further optimize the company’s capital structure and reflect its strong financial position,
About this update from Root, Inc.
COLUMBUS, Ohio, May 06, 2026 (GLOBE NEWSWIRE) -- Root, Inc. (NASDAQ: ROOT), the leading technology company in car insurance, today announced it has successfully refinanced its existing debt into a new term loan facility led by The Huntington National Bank. In addition, Root’s board of directors has authorized the company to repurchase up to $75 million of its Class A common stock. Together, these actions further optimize the company’s capital structure and reflect its strong financial position, disciplined capital management, and commitment to enhancing long-term stockholder value. "These actions reflect the strength of our operating performance and the progress we’ve made improving our cost of capital,” said Alex Timm, Founder and CEO of Root. “With a more efficient capital structure, we have greater flexibility to allocate capital dynamically. Our focus remains unchanged: deploying capital where we see the highest risk-adjusted returns, across both investing in the business and returning capital to stockholders.” Debt Refinancing On May 4, 2026, Root completed a $200 million senior secured term loan financing led by The Huntington National Bank. The term loan matures on May 4, 2029. Root used the proceeds from the term loan to repay its existing $200 million term loan facility with BlackRock and secure lower-cost bank financing. The term loan initially bears interest at SOFR + 3.25%, with pricing based on the company’s debt-to-capital ratio. This term loan represents a 225 basis point reduction from the prior facility and is expected to generate approximately $4.5 million in annual interest expense savings. In the second quarter of 2026, Root will expense approximately $4.8 million of unamortized debt discount, issuance costs, and a prepayment premium related to the prior term loan. The new credit facility enhances Root’s capital flexibility, including increased capacity to opportunistically execute share repurchases while continuing to invest in strategic priorities. Share Repurchase Program Root’s board of directors has authorized a share repurchase program of up to $75 million. Root may utilize various methods to effect any repurchases, which could include open market purchases, privately negotiated transactions, block purchases, accelerated share repurchase agreements or a combination of methods, including pursuant to trading plans adopted unde...