Private Offering of $400 Million of Senior Secured Notes by Ryan Specialty Group

Rhea-AI Summary

Ryan Specialty Group, a key player in specialty insurance, plans to offer up to $400 million in senior secured notes due 2030. The offering, not guaranteed by the parent company, will be secured on a first-lien basis by assets under its credit agreement. Proceeds will fund general corporate purposes, including acquisitions and related expenses. The notes will be privately offered to qualified institutional buyers and are not registered under the Securities Act. This move may enhance the company's financial flexibility but does not come without risks associated with its unsecured structure.

Positive

• Intends to raise $400 million to fund corporate purposes and acquisitions.
• Notes secured on a first-lien basis, providing potential safety for investors.

Negative

• Offering not guaranteed by the parent company, increasing risk for noteholders.
• Potential dilution of existing equity if funds are raised affecting capital structure.

CHICAGO--(BUSINESS WIRE)-- Ryan Specialty Group Holdings, Inc. (the “Parent” or “Ryan Specialty Group”) (NYSE: RYAN), a leading international specialty insurance firm, today announced that Ryan Specialty Group, LLC (the “Company”) intends to offer up to $400 million aggregate principal amount of senior secured notes due 2030 in a private offering.

The notes will be, jointly and severally, unconditionally guaranteed on a senior secured basis by each of the Company’s existing and future wholly owned subsidiaries that guarantee the Company’s obligations under its credit agreement. The notes will not be guaranteed by the Parent. Subject to certain exceptions, the notes will be secured on a first-lien basis by substantially all of the assets that secure the credit facilities under the Company’s credit agreement. The Company intends to use the net proceeds from this offering for general corporate purposes, including future acquisition opportunities and investments, and to pay fees and expenses related to this offering.

The newly issued senior secured notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction, and will not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements. The offering of the notes will be made only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S under the Securities Act.

This press release is issued pursuant to Rule 135c of the Securities Act and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. Any offers of the notes will be made only by means of a private offering memorandum.

About Ryan Specialty Group

Founded in 2010, Ryan Specialty Group (NYSE: RYAN) is a rapidly growing service provider of specialty products and solutions for insurance brokers, agents and carriers. Ryan Specialty Group provides distribution, underwriting, product development, administration and risk management services by acting as a wholesale broker and a managing underwriter. Our mission is to provide industry-leading innovative specialty insurance solutions for insurance brokers, agents and carriers. Learn more at ryansg.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Ryan Specialty Group’s current intentions, expectations or beliefs regarding the proposed notes offering. These statements may be preceded by, followed by or include the words “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “outlook,” “plan,” “potential,” “project,” “projection,” “seek,” “can,” “could,” “may,” “should,” “would,” “will,” the negatives thereof and other words and terms of similar meaning. Forward-looking statements include all statements that are not historical facts. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Ryan Specialty Group does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220117005535/en/

Media

Alice Phillips Topping

Chief Marketing & Communications Officer

Ryan Specialty Group

Alice.Topping@ryansg.com

+1 312-635-5976

Investor Relations

Noah Angeletti

Treasurer & Head of Investor Relations

Ryan Specialty Group

ir@ryansg.com

+1 312-784-6152

Source: Ryan Specialty Group

FAQ

What is the purpose of Ryan Specialty Group's $400 million notes offering?

Ryan Specialty Group aims to use the proceeds for general corporate purposes, including future acquisitions and related expenses.

When are the senior secured notes due?

The senior secured notes are due in 2030.

Is the offering of the notes registered under the Securities Act?

No, the notes will not be registered under the Securities Act and will be offered only to qualified institutional buyers.

What risks are associated with the senior secured notes offering by Ryan Specialty Group?

The notes are not guaranteed by the parent company, increasing risk for investors and potential dilution of existing equity.

Who can participate in the offering of the senior secured notes?

The offering is limited to persons believed to be qualified institutional buyers and non-U.S. persons.