Atlas Financial Holdings, Inc. Prices $25.0 Million of Senior Notes

Business Wire 21-Apr-2017 4:58 PM

CHICAGO--(BUSINESS WIRE)-- Atlas Financial Holdings, Inc. (NASDAQ:AFH) (Atlas or the Company), today announced that it has priced an offering of $25.0 million aggregate principal amount of 6.625% Senior Notes due 2022, at a price equal to 100% of the aggregate principal amount of the Senior Notes. After the underwriting discount and estimated offering expenses payable by the Company, it expects to receive net proceeds of approximately $23.9 million. The offering is expected to close on April 26, 2017.

The Company intends to use the net proceeds of the offering, together with cash on hand, for the repayment of $19.4 million in outstanding indebtedness under its secured credit facility (which will then be terminated), repurchases of common stock, supporting organic growth, and potential acquisitions, as well as for general corporate purposes.

Sandler O'Neill + Partners, L.P. acted as sole book-running manager for the offering. Boenning & Scattergood, Inc. and American Capital Partners, LLC acted as co-managers.

The Notes have been issued pursuant to an effective shelf registration statement (File No. 333-195495) (including a base prospectus), a preliminary prospectus supplement filed with the Securities and Exchange Commission (the "SEC"), and a final prospectus supplement to be filed with the SEC.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the notes described herein, nor shall there be any sale of the notes in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The notes offering is being made solely by means of a prospectus supplement and accompanying prospectus, copies of which may be obtained without charge by visiting EDGAR on the SEC's website at www.sec.gov or by contacting Sandler O'Neill + Partners, L.P., 1251 Avenue of the Americas, 6th Floor, New York, New York 10020, (866) 805-4128.

About Atlas

The primary business of Atlas is commercial automobile insurance in the United States, with a niche market orientation and focus on insurance for the "light" commercial automobile sector including taxi cabs, non-emergency paratransit, limousine/livery and business auto. The business of Atlas is carried on through its subsidiaries American Country Insurance Company, American Service Insurance Company, Inc., Gateway Insurance Company, Global Liberty Insurance Company of New York, Anchor Holdings Group, Inc., Anchor Group Management, Inc., and Plainview Premium Finance Company, Inc. Atlas' insurance subsidiaries have decades of experience with a commitment to always being an industry leader in these specialized areas of insurance.

Forward-Looking Statements

This release includes forward-looking statements regarding Atlas and its insurance subsidiaries and businesses. Such statements are based on the current expectations of the management of each entity. The words "anticipate", "expect", "believe", "may", "should", "estimate", "project", "outlook", "forecast" or similar words are used to identify such forward looking information. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting the Company and its subsidiaries, including risks regarding the insurance industry, economic factors and the equity markets generally and the risk factors discussed in the "Risk Factors" section of the Company's registration statement on Form S-3 and the prospectus supplement. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Atlas and its subsidiaries undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

For more information about Atlas, please visit www.atlas-fin.com.

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At the CompanyAtlas Financial Holdings, Inc.Scott Wollney, 847-700-8600CEOswollney@atlas-fin.comwww.atlas-fin.comorInvestor RelationsThe Equity Group Inc.Adam Prior, 212-836-9606Senior Vice Presidentaprior@equityny.comwww.theequitygroup.com

Source: Atlas Financial Holdings, Inc.