First Acceptance Closes Acquisition and Announces Financing of Titan Non-Standard Automobile Insurance Agencies
01 Juillet 2015 - 3:15PM
First Acceptance Closes
Acquisition and Announces Financing of Titan Non-Standard
Automobile Insurance Agencies
NASHVILLE, TN, July 1, 2015 -- First Acceptance
Corporation (NYSE: FAC), d/b/a Acceptance Insurance, a leader in
the non-standard automobile insurance industry, announced today
that it has completed its acquisition of certain assets of
Titan Insurance Services, Inc. and Titan Auto Insurance of New
Mexico, Inc. (the "Titan Agencies") that it previously announced on
April 27, 2015. The Titan Agencies were previously owned and
operated by Nationwide.
Through these agencies, First Acceptance will sell
private passenger non-standard automobile insurance principally in
California, but also in Texas, Arizona, Florida, Nevada and New
Mexico. First Acceptance plans to rebrand the stores under its
Acceptance Insurance name. These new Acceptance stores will
initially continue to write policies for both Nationwide and other
unrelated insurance companies. Going forward, First Acceptance
plans to introduce its own new products to the California, Arizona,
Nevada and New Mexico stores and its current Texas and Florida
products to the stores in those states. First Acceptance is in the
process of obtaining an insurance company license in California and
is already licensed in the three other states where it does not
currently write business.
Under the terms of the transaction, First
Acceptance paid a total of $34.5 million in cash for the assets of
83 retail stores.
The acquisition was partially financed through new
senior debt in the form of a $30.0M unsecured term loan with
Diamond Family Investments LP, an entity controlled by Gerald J.
Ford, First Acceptance's principal stockholder.
Wachtell, Lipton, Rosen & Katz served as legal
counsel to First Acceptance. Sandler O'Neil & Partners, L.P.
rendered a fairness opinion to the First Acceptance Board of
Directors in connection with the financing.
About First Acceptance
Corporation
First Acceptance Corporation is a provider of
non-standard personal automobile insurance and other related
products. Headquartered in Nashville, TN, First Acceptance
Corporation markets its services through the Acceptance Insurance,
Yale Insurance, and Insurance Plus brands. The Company operates
over 350 retail locations in 13 states staffed with
employee-agents. In addition to our retail locations, customers are
also able to complete the entire sales process over the phone via
our call center or through either our consumer-based website or
mobile platform. For more information, visit
acceptanceinsurance.com.
Forward-looking
Statements
Statements about the expected effects of the
recently completed acquisition and all other statements in this
document, other than historical facts, constitute forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Readers and
security holders are cautioned not to place undue reliance on these
forward-looking statements and any such forward-looking statements
are qualified in their entirety by reference to the following
cautionary statements. All forward-looking statements speak only as
of the date hereof and are based on current expectations and
involve a number of assumptions, risks and uncertainties that could
cause the actual results to differ materially from such
forward-looking statements. First Acceptance Corporation, or the
Company, may not be able to realize any or all of the benefits
contemplated by the recent acquisition because of a number of
factors. Factors that may affect the business or financial results
of the Company are described in the risk factors included in the
Company's filings with the Securities and Exchange Commission,
including the Company's 2014 Annual Report on Form 10-K and other
reports filed with the Securities and Exchange Commission and
available at the SEC's website at www.sec.gov, which factors are
incorporated herein by reference. Except as required by law, the
Company expressly disclaims a duty to provide updates to
forward-looking statements, whether as a result of new information,
future events or other occurrences.
SOURCE: First Acceptance
Corporation
INVESTOR RELATIONS
CONTACT:
Michael J. Bodayle
615.844.2885
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: First Acceptance Corporation via
Globenewswire
HUG#1933083
First Acceptance (QX) (USOTC:FACO)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
First Acceptance (QX) (USOTC:FACO)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024