Nassau Companies Upsizes Senior Notes Offering

News Summary

The Nassau Companies of New York has increased its private offering of senior notes from $400 million to $425 million due to strong investor interest. The fixed coupon rate for the 2030 Notes is set at 7.875%, with an expected closing date in July 2025. Proceeds will be used for general corporate purposes and to repay existing credit facilities. The offering is aimed at qualified institutional buyers and carries risks due to its unsecured nature, with no public market currently available for trading.

Hartford, Connecticut – The Nassau Companies of New York has announced an increase in its private offering of senior notes, raising the total amount from $400 million to $425 million. This adjustment reflects strong investor interest as the company sets a fixed coupon rate of 7.875% for its 2030 Notes, which will be priced at 100.000% of their face value. The expected closing date for this offering is set for July 11, 2025, subject to standard closing conditions.

The proceeds from this senior notes offering are earmarked for general corporate purposes and will also be utilized to fully repay existing term loan credit facilities. This move indicates a strategic effort by Nassau Financial Group to optimize its financial structure and enhance liquidity for ongoing operations and future growth.

It is important to note that the 2030 Notes are being offered solely to qualified institutional buyers in accordance with Rule 144A of the Securities Act of 1933, as well as certain non-U.S. persons under Regulation S. These notes have not been registered under the Securities Act or any securities laws in additional jurisdictions, meaning they are not available for public trading.

In terms of specifics related to the notes, the 2030 Notes are unsecured and will be subordinated to any secured debts incurred by the company, introducing a certain level of risk for investors. Although Nassau Financial Group may redeem these notes before their maturity, currently, no public market exists for them, raising uncertainty about the potential for an active trading platform in the future.

The Nassau Companies of New York is a subsidiary of Nassau Financial Group, which is headquartered in Hartford, Connecticut. This financial services firm operates with an integrated platform that includes both insurance and asset management divisions, allowing for a diversified range of offerings. As of March 31, 2025, Nassau Financial Group manages approximately $24.8 billion in assets and serves over 365,000 policyholders and contract holders.

The announcement also includes forward-looking statements that encompass several risks and uncertainties associated with the company’s operations. Potential impacts on profitability could arise from economic and political conditions, alongside financial risks stemming from fluctuating interest rates. It is crucial for investors to understand these risks when considering engagement with the company’s financial products.

Overall, the upsized offering of senior notes by the Nassau Companies demonstrates a proactive approach to enhancing the company’s financial stability while accessing additional capital to meet corporate objectives and improve liquidity. With a strong focus on its asset management capabilities and a substantial existing client base, Nassau Financial Group continues to position itself favorably within the competitive landscape of the financial services sector.

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