Kingsway Financial Services Inc. (KFS) Reports Major Debt Repurchase

By IBTimes Staff Reporter | July 09 2010 5:18 AM

Kingsway Financial Services Inc. announced the repurchase of significant amounts of two issues of its outstanding debt. The purchases amount to approximately $55.1 million.

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Kingsway Financial Services Inc. has repurchased $33.9 million CAD principal of the 6% debentures due on 7/11/2012, and $25.6 million of the 7.5% senior notes due in 2014. The debentures were issued by Kingsway 2007 General Partnership, and the senior notes were issued by Kingsway America Inc.

Kingsway Financial Services Inc. obtained the funds to complete the repurchase through the sale of the Jevco Insurance Company, one of its subsidiaries. Kingsway Financial Services Inc. sold the Jevco Insurance Company for $264.2 million to the Westaim Corporation. The deal closed on 3/29/2010.

Kingsway Financial Services Inc. recently announced its intention to sell the Mendota Insurance Company, a wholly owned subsidiary of the company. The Mendota Insurance Company offers insurance in Minnesota, and other areas.

Kingsway Financial Services Inc. is a property and casualty insurance company that focuses on non-standard automobile insurance for individuals that cannot obtain standard insurance because of their driving record or other factors.

For more information on the company, go to https://www.kingsway-financial.com