United Fire Group, Inc. announces senior notes offering
Rhea-AI Summary
United Fire Group (NASDAQ: UFCS) has successfully completed a private placement of $30 million senior unsecured notes. The Series B notes carry a 9.0% interest rate and will mature on May 31, 2039.
The offering was conducted with Ares Alternative Credit funds, with Stonybrook Capital serving as the exclusive financial advisor. The proceeds will be utilized to support the company's anticipated growth and general corporate purposes. The notes were offered under Rule 144A to qualified institutional buyers in the U.S. and to certain non-U.S. persons through Regulation S.
Positive
- Secured $30 million in long-term financing through senior notes
- Funds will support anticipated growth initiatives
- Successfully placed notes with reputable institutional investors
Negative
- High interest rate of 9.0% on the notes may increase debt servicing costs
- Long-term debt commitment extending to 2039
News Market Reaction
On the day this news was published, UFCS declined 1.42%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
CEDAR RAPIDS, Iowa, July 10, 2025 (GLOBE NEWSWIRE) -- United Fire Group, Inc. (UFG) (Nasdaq: UFCS), a property and casualty insurance holding company, today announced that it has successfully completed a placement of
Stonybrook Capital, LLC served as the company’s exclusive financial advisor in connection with the offering.
The notes were offered and sold in a transaction exempt from the registration requirements of the U.S. Securities Act of 1933, as amended (the "Securities Act"), and in the United States only to persons reasonably believed to be "qualified institutional buyers" in reliance on the exemption from registration under the Securities Act provided by Rule 144A and outside the United States to certain non U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.
About UFG
Founded in 1946 as United Fire & Casualty Company, UFG, through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance. The company is licensed as a property and casualty insurer in 50 states and the District of Columbia, and is represented by approximately 1,000 independent agencies. AM Best assigns a rating of “A-” (Excellent) for members of the United Fire & Casualty Group. For more information about UFG, visit www.ufginsurance.com.
Disclosure of forward-looking statements
This release may contain forward-looking statements about our operations, anticipated performance and other similar matters. The Private Securities Litigation Reform Act of 1995 provides a safe harbor under the Securities Act of 1933 and the Securities Exchange Act of 1934 for forward-looking statements. The forward-looking statements are not historical facts and involve risks and uncertainties that could cause actual results to differ from those expected and/or projected. Such forward-looking statements are based on current expectations, estimates, forecasts and projections about the company, the industry in which we operate, and beliefs and assumptions made by management. Words such as “expect(s),” “anticipate(s),” “intend(s),” “plan(s),” “believe(s),” “continue(s),” “seek(s),” “estimate(s),” “goal(s),” “remain(s) optimistic,” “target(s),” “forecast(s),” “project(s),” “predict(s),” “should,” “could,” “may,” “will,” “might,” “hope,” “can” and other words and terms of similar meaning or expression in connection with a discussion of future operations, financial performance or financial condition, are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements. Information concerning factors that could cause actual outcomes and results to differ materially from those expressed in the forward-looking statements is contained in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024 (“2024 Annual Report”), filed with the Securities and Exchange Commission (“SEC”) on February 26, 2025. The risks identified in our 2024 Annual Report and in our other SEC filings are representative of the risks, uncertainties, and assumptions that could cause actual outcomes and results to differ materially from what is expressed in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release or as of the date they are made. Except as required under the federal securities laws and the rules and regulations of the SEC, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
Contact:
Investor relations
Email: ir@unitedfiregroup.com
Media inquiries
Email: news@unitedfiregroup.com
FAQ
What is the size and interest rate of UFCS's new senior notes offering?
How will UFCS use the proceeds from the senior notes offering?
Who were the key parties involved in UFCS's notes offering?
When do UFCS's Series B senior notes mature?
Who is eligible to purchase UFCS's senior notes?
