CHICAGO - Ryan Specialty Holdings, Inc. (NYSE:RYAN), an insurance brokerage firm with a market capitalization of $8.62 billion and impressive year-to-date returns of over 70%, announced today that its indirect subsidiary, Ryan Specialty, LLC, has completed the issuance of $600 million in additional 5.875% Senior Secured Notes due 2032. This move follows the private offering to qualified institutional buyers and international investors under Rule 144A and Regulation S, respectively. According to InvestingPro data, the company maintains a GOOD financial health score, suggesting strong operational fundamentals.
The newly issued notes, termed the "New 2032 Notes," are an addition to the $600 million of the same class of notes initially issued on September 19, 2024. These notes are guaranteed by the Company’s subsidiaries that also back its 4.375% Senior Secured Notes due 2030 and its credit agreement but are not guaranteed by Ryan Specialty itself. The New 2032 Notes, along with the pre-existing ones, will be secured by a majority of the Company's assets.
Ryan Specialty intends to allocate the net proceeds from this offering towards potential future acquisitions and investments in line with its strategic growth plans, as well as for general corporate purposes. With revenue growth of 20.14% in the last twelve months, the company continues to demonstrate strong expansion momentum.
A portion of the proceeds is also expected to repay up to $400 million of the outstanding borrowings under the Revolving Credit Facility, which had been used to fund the acquisition of Innovisk Capital Partners (WA:CPAP) on November 4, 2024.
The New 2032 Notes were issued at 99.500% of their principal amount, based on a first supplemental indenture to the September 19, 2024 indenture, between Ryan Specialty, LLC, the guarantors, and U.S. Bank Trust Company, National Association, as trustee and notes collateral agent. The Company may, in the future, issue additional notes under the same terms, subject to the covenants in the indenture.
In other recent news, Ryan Specialty Group reported a considerable increase in third-quarter revenue and earnings. The company's total revenue rose by 20.5% to $605 million, with organic growth contributing 11.8%. Adjusted earnings before interest, taxes, depreciation, amortization, and changes in acquisition costs (EBITDAC) increased by 29.4% to $190 million, while adjusted diluted earnings per share (EPS) grew by 28% to $0.41.
Ryan Specialty's focus on Excess & Surplus (E&S) markets is seen as a strategic advantage as risks become more complex and demand for specialized insurance solutions grows. Furthermore, the company aims to maintain organic revenue growth guidance of 13.0% to 14.0% for 2024.
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