Hagerty raises $105M via convertible preferred equity and debt from State Farm, Markel, Hagerty family

Hagerty, Inc.

Closed $80M Series A Convertible Preferred Stock at $9.43/share (8.48M shares) to accredited investors State Farm, Markel Group, and Hagerty family trusts.
Secured $25M unsecured term loan commitment from State Farm for Hagerty Reinsurance Limited, subject to Bermuda Monetary Authority approval.
Proceeds to support profitable growth: expand risk appetite, enhance core insurance product, and invest in technology for efficiencies.
Series A preferred pays 7% cumulative dividend (cash or PIK), converts at $11.79/share, with redemption triggers at 120% to 100% of purchase price over 10 years.
Both State Farm and Markel are existing >5% stockholders; State Farm plans to launch commercial relationship with Hagerty.

item 1.01 item 3.02 item 3.03 item 5.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Hagerty, Inc. entered into Securities Purchase Agreement with certain accredited investors valued at $80.0 million (effective 2023-06-23).

Action: entry
Agreement: equity purchase
Counterparty: certain accredited investors
Value: $80.0 million
Effective: 2023-06-23

Exact text from the filing

On June 23, 2023, Hagerty, Inc., a Delaware corporation (the “ Company ”), entered into a Securities Purchase Agreement (the “ Purchase Agreement ”) with certain accredited investors (the “ Investors ”), pursuant to which it agreed to issue and sell to the Investors an aggregate of 8,483,561 shares of the Company’s newly-designated Series A Convertible Preferred Stock, par value $0.0001 per share (the “ Series A Preferred Stock ”), for an aggregate purchase price of $80.0 million, at a per-share purchase price of $9.43 (the “ Series A Purchase Price ” and the transaction, the “ Private Placement ”).

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Hagerty, Inc. filing history →

Source: SEC EDGAR

accession 0001840776-23-000126

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