SUNRISE, Fla., Dec. 19, 2017 (GLOBE NEWSWIRE) -- Federated National Holding Company (NASDAQ:FNHC), an insurance holding company, announced today that it has entered into a note purchase agreement pursuant to which the Company has agreed to sell in a private placement to accredited investors $25 million in principal amount of senior unsecured floating-rate notes. The Notes, when issued upon the closing of the offering, will have a ten-year maturity and will bear interest, payable quarterly, at 7% above three-month LIBOR and principal will be payable in full at maturity. The Notes, when issued, may be redeemed in whole or in part at 102% in the first two years, 101% in years three through five, and at par after year five. The closing of the offering, which is subject to the satisfaction of customary closing conditions, is expected to occur by December 31, 2017. The Company may also sell an additional tranche of senior notes, although there can be no assurances that the offering and sale of this additional tranche will occur.

About the Company

The Company is authorized to underwrite, and/or place through its wholly owned subsidiaries, homeowners’ multi-peril, personal automobile, commercial general liability, federal flood, and various other lines of insurance in Florida and various other states. The Company also serves as managing general agent for its joint venture, Monarch National Insurance Company. The Company markets and distributes its own and third-party insurers’ products and our other services through a network of independent agents. The Company also utilizes a select number of general agents for the same purpose.