KINSALE CAPITAL GROUP, INC. (NASDAQ:KNSL) Files An 8-K Termination of a Material Definitive Agreement

On December 8, 2016, Kinsale Capital Group, Inc. (the “Company”) made a voluntary prepayment to Lender (as defined below) of $27.7 million, the total amount outstanding under the Amended and Restated Loan and Security Agreement, dated as of June 28, 2016, among the Company, as borrower, Kinsale Management, Inc. (“Kinsale Management”) and Aspera Insurance Services, Inc. (“Aspera”), as loan guarantors, and The PrivateBank and Trust Company, as lender (“Lender”), in accordance with Article 4 of the Credit Agreement. As a result of the prepayment, the Credit Agreement, which would have otherwise terminated in December 2020, was terminated early in accordance with its terms.

to the terms of the Credit Agreement, the term loan was secured and the applicable interest rate on the term loan accrued at a rate equal to the 3-month LIBOR plus a margin, payable on the last day of each calendar quarter. The Company’s wholly-owned subsidiaries, Kinsale Management and Aspera, were guarantors of the term loan. The assets of Kinsale Management and the stock of Kinsale Insurance Company were pledged as collateral to Lender.

The Credit Agreement had been previously amended and restated in June 2016, among other things, to (i) increase the materiality thresholds and grace periods for events of default thereunder, (ii) add additional permitted categories to the debt, lien, restricted payments, mergers, disposals, transactions with affiliates and investment covenants, as well as to increase the general permitted baskets under the debt, lien, restricted payments and investment covenants, (iii) remove certain representations and warranties and affirmative covenants, (iv) add materiality qualifiers to certain representations and warranties, (v) add reinvestment rights and a minimum threshold with respect to net cash proceeds of certain asset disposals (other than disposals of the pledged equity) which must be used to prepay the outstanding term loans and (vi) make the creation and perfection requirements with respect to collateral less onerous.

About KINSALE CAPITAL GROUP, INC. (NASDAQ:KNSL)
Kinsale Capital Group, Inc. is a specialty insurance company. The Company focuses on the excess and surplus lines (E&S) market in the United States. The Company operates through the Excess and Surplus Lines Insurance segment. The Company markets and sells these insurance products in approximately 50 states and the District of Columbia through a network of independent insurance brokers. The Company’s commercial lines offerings include construction, small business, excess casualty, general casualty, energy, professional liability, life sciences, product liability, allied health, healthcare, commercial property, management liability, environmental, inland marine, commercial insurance and public entity. The Company writes an array of coverages with a focus on smaller commercial buyers. The Company also writes a small amount of homeowners insurance in the personal lines market. The Company’s subsidiaries include Kinsale Management, Inc. and Kinsale Insurance Company. KINSALE CAPITAL GROUP, INC. (NASDAQ:KNSL) Recent Trading Information
KINSALE CAPITAL GROUP, INC. (NASDAQ:KNSL) closed its last trading session up +0.16 at 30.59 with 100,288 shares trading hands.