SKWD adopts unsecured revolver, terminates prior credit agreement
Rhea-AI Filing Summary
Skyward Specialty Insurance Group, Inc. entered into a new unsecured revolving credit facility with a maximum principal amount of $150.0 million, increasing to $250.0 million on the closing date of its acquisition of Apollo Group Holdings Limited. The facility permits up to $30.0 million in letters of credit, rising to $50.0 million at that closing, and includes an uncommitted accordion feature of up to $50.0 million. Borrowings will bear interest at term SOFR plus 150–190 basis points or a base rate plus 50–90 basis points, with a fee of 0.20%–0.35% on undrawn amounts, and availability runs through November 12, 2030.
The agreement includes customary covenants on additional indebtedness above $10.0 million, shareholder distributions and financial tests on net worth, leverage, ratings and liquidity. Skyward and its non-insurance wholly owned subsidiaries guarantee the obligations under a separate guaranty agreement. In connection with this new facility, the company terminated its prior March 28, 2023 credit agreement and fully repaid all outstanding amounts under that facility.
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Insights
Skyward replaces its prior credit line with a larger, longer-dated unsecured revolver.
Skyward Specialty Insurance Group, Inc. has arranged a new unsecured revolving credit facility with an initial maximum principal amount of $150.0 million, stepping up to $250.0 million when its acquisition of Apollo Group Holdings Limited closes. The structure provides a letters of credit sublimit of $30.0 million, increasing to $50.0 million, and an uncommitted accordion of up to $50.0 million, giving lenders the option to add capacity on existing terms. Availability extends through November 12, 2030, which sets a clear medium-term liquidity backstop.
Pricing is tied to the company’s debt-to-capitalization ratio, with drawn amounts accruing interest at term SOFR plus 150–190 basis points or a base rate plus 50–90 basis points, and a 0.20%–0.35% fee on average daily undrawn balances. Covenants restrict additional indebtedness exceeding $10.0 million, certain shareholder distributions, and impose minimum net worth, maximum leverage, minimum A.M. Best rating and liquidity tests, aligning lender protections with the company’s capital strength and ratings profile. Obligations are guaranteed by existing and future wholly owned subsidiaries other than insurance company subsidiaries, which is typical for an insurance group structure.
The company simultaneously terminated its March 28, 2023 credit agreement and fully repaid all outstanding amounts thereunder, consolidating its bank financing into this new facility. The unsecured nature of the revolver and the covenant package suggest an emphasis on maintaining balance sheet flexibility while supporting ongoing operations and the Apollo Group acquisition. Subsequent disclosures may clarify how frequently the facility is drawn and how covenant headroom evolves relative to these new limits.
8-K Event Classification
FAQ
What new credit facility did Skyward Specialty Insurance Group (SKWD) enter into?
Skyward Specialty Insurance Group entered into an unsecured revolving credit facility with an initial maximum principal amount of $150.0 million, increasing to $250.0 million on the closing date of its acquisition of Apollo Group Holdings Limited. The facility runs through November 12, 2030 and includes customary covenants and events of default.
How will the Skyward Specialty (SKWD) revolver change when the Apollo acquisition closes?
On the closing date of the Apollo Group Holdings Limited acquisition, the maximum principal amount of Skyward’s revolving credit facility will increase from $150.0 million to $250.0 million, and the letters of credit sublimit will rise from $30.0 million to $50.0 million.
What are the key pricing terms of Skyward Specialty’s new credit facility?
Borrowings under the facility bear interest at either term SOFR plus a margin of 150–190 basis points or a base rate plus a margin of 50–90 basis points, depending on Skyward’s debt-to-capitalization ratio. The company also pays a 0.20%–0.35% fee on average daily undrawn amounts, with SOFR using a 0.00% floor and a 0.10% credit spread adjustment.
What covenants apply to Skyward Specialty (SKWD) under the new credit agreement?
The facility includes covenants limiting additional indebtedness exceeding $10.0 million, restricting certain distributions, redemptions and repurchases of stock upon specified events, and imposing financial covenants on minimum consolidated net worth, maximum total debt-to-capitalization, minimum A.M. Best rating and minimum liquidity, along with customary events of default.
Who guarantees Skyward Specialty’s obligations under the new facility?
Skyward Specialty and its existing wholly owned subsidiaries, as well as subsequently acquired or organized subsidiaries, guarantee the obligations under the facility pursuant to a guaranty agreement. Insurance company subsidiaries are excluded, subject to certain other exceptions described in that guaranty.
What happened to Skyward Specialty’s prior credit agreement?
On November 13, 2025, in connection with entering into the new facility, Skyward Specialty terminated its March 28, 2023 credit agreement with Truist Bank as administrative agent and fully repaid all amounts outstanding under that prior agreement.
Does the Skyward Specialty (SKWD) facility include an accordion feature?
Yes. Maximum capacity under the facility may be increased by up to $50.0 million through an uncommitted accordion feature, under which existing and new lenders may, at their option, agree to provide additional financing on the same terms, subject to specified conditions.