Trucordia will receive a $1.3 billion investment from Carlyle’s Global Credit platform in a transaction that will reduce the insurance brokerage’s debt and simplify its ownership structure through the repurchase of shares from minority investors.
The deal, expected to close later this month, values the company at $5.7 billion.
The capital will provide Trucordia with additional flexibility as it evaluates long-term strategic options.
CEO Felix Morgan said the investment will support the company’s financial structure and ongoing growth initiatives, which include recent changes to its operating model, leadership team, and a series of acquisitions.
Based in Utah, Trucordia is one of the 20 largest insurance brokerages in the US, offering commercial and personal lines, life, and employee benefits products. The company has expanded through a combination of organic growth and acquisitions.
Chief financial officer Brandon Gray said the Carlyle investment will lower the company’s leverage and strengthen its balance sheet, allowing for continued investment in core areas of the business.
Carlyle executives said the firm views Trucordia as well-positioned within the insurance distribution sector. Andreas Boye, partner and head of Carlyle Credit Opportunities in North America, cited the company’s management and strategic direction as key considerations. Gary Jacovino, a partner on the credit opportunities team, said Carlyle intends to support Trucordia as it pursues growth and operational scale.
The announcement follows a refinancing effort being led by JPMorgan Chase & Co., which was reportedly arranging a $1.89 billion first-lien loan to replace existing debt that had been provided by private credit firms. Bloomberg reported that the refinancing would replace debt priced at 5.5 percentage points over the benchmark rate. BlackRock Inc., AB Private Credit Investors, Morgan Stanley, and Blue Owl Capital Inc. were among the lenders in the original financing, according to regulatory filings.
J.P. Morgan is serving as sole advisor and placement agent to Trucordia. Legal counsel is being provided by Orrick, Herrington & Sutcliffe LLP for Trucordia and Latham & Watkins LLP for Carlyle.
