Confie withdraws $350 million notes offer, cites unattractive rate

By Paul A. Harris

Portland, Ore., Oct. 11 – Confie Seguros Holding II Co. has elected not to proceed with a proposed $350 million offering of senior notes due 2022 (Caa2/CCC+) that had been marketed on an investor roadshow, according to a market source.

The notes offering, which the company referred to as “opportunistic,” was withdrawn because of a less attractive rate dynamic than Confie anticipated, according to the source.

The company also scrapped plans to refinance its existing $261.4 million second-lien term loan with the proceeds from the notes offering, citing the 101 prepayment penalty on the second-lien loan as another reason for abandoning that portion of its refinancing.

Confie upsized its first-lien term loan by $75 million, to $665 million from $590 million, with proceeds from the first-lien debt to be used to refinance an existing $547.6 million first-lien term loan and an $89.8 million first-lien term loan B-1, and to repay $15.3 million in revolver borrowings.

RBC Capital Markets was the left lead bookrunner for the notes offer. Barclays and Goldman Sachs & Co. were the joint bookrunners.

Confie Seguros, an ABRY Partners portfolio company, is a Buena Park, Calif.-based personal lines insurance broker.

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