Patriot National Updates Terms and Underwriters for Secondary Offering

In this offering, Patriot National will not receive any proceeds from the sale of the shares by the selling stockholders. The company is offering $55 million of its common stock, while the selling stock holders are offering $25 million.

This is an independent national provider of comprehensive technology-enabled outsourcing solutions that help insurance carriers, employers and other clients mitigate risk, comply with complex regulations and save time and money. The company offers a full suite of end-to-end insurance-related and specialty services that allow its clients to improve efficiencies and reduce expenses through value-added processes.

The core of its value proposition includes the benefit of a “one-stop” solution with a broad array of offered services, scalable, state-of-the-art technology and solutions to complex business and regulatory processes. The goal is to be the preferred provider of mandatory employer services, such as risk management services, health and welfare services, employee onboarding and compliance services.

Patriot National principally offers two types of services: front-end services, such as brokerage, underwriting and policyholder services, and back-end services, such as claims adjudication and administration. The company provides these services either on an individual basis, as bundles of two or more services tailored to a client’s specific needs or on a turnkey basis in which it provides a comprehensive set of front-end and back-end services to a client.

Revenue totaled $90.3 million for the six months ended June 30, 2015, and $117.3 million for the year ended December 31, 2014. Net income (loss) for such periods was $(3.8) million and $10.4 million, respectively.

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The company intends to use the net proceeds from this offering to repay all outstanding amounts under the revolving credit facility of its senior secured credit facility, including accrued interest. The remaining proceeds after the repayment of these borrowings will be put toward general corporate purposes, consistent with the company’s growth strategy.

Shares of Patriot National were up 0.3% at $13.72 Thursday afternoon. The stock has a consensus analyst price target of $20.67 and a 52-week trading range of $11.02 to $19.32.