Hagerty's Class A Common Stock Offering
Hagerty, Inc. (NYSE: HGTY), an iconic name in automotive enthusiasm and a leading provider of specialty vehicle insurance, has recently announced an upsized pricing of its secondary offering. This offering consists of approximately 9,700,000 shares of Hagerty's Class A Common Stock, which is being introduced to the market at a public price of $9.34 per share. This significant financial maneuver is being executed by Hagerty Holding Corp. and Aldel LLC, the companies engaging as the Selling Stockholders.
Details of the Offering
In addition to the core 9.7 million shares being offered, the Selling Stockholders have also granted underwriters a robust 30-day option to purchase an additional 1,455,000 shares of Hagerty's Class A Common Stock. As this financial action unfolds, it's anticipated that the offering will complete under customary closing conditions. While the transaction is expected to close shortly, it is notably significant that Hagerty will not benefit directly from the proceeds of the sale.
Use of Proceeds
The proceeds from this offering are primarily directed towards a redemption for the estate of Kim Hagerty concerning a corresponding number of shares in Hagerty Holding Corp. It's important to recognize that the Selling Stockholders will be responsible for all underwriting discounts and commissions related to this public offering.
Underwriter Collaboration
Prominent financial entities are involved in managing this offering, including Keefe, Bruyette & Woods, a Stifel Company, and J.P. Morgan, serving as lead bookrunning managers. Additionally, BMO Capital Markets, Citizens Capital Markets, and Wells Fargo Securities join as primary bookrunning managers, while Oppenheimer & Co. takes the role of co-manager of the offering. This collaborative effort underscores the confidence these financial institutions have in Hagerty's market position.
Accessing the Prospectus
For those interested in more details, the offering is being conducted solely through a prospectus supplement alongside the base prospectus. Interested parties will be able to access copies of these documents upon their availability, which will be free to obtain by navigating to EDGAR on the SEC's website. Should you wish to receive the prospectus directly, contacting either Keefe, Bruyette & Woods or J.P. Morgan will facilitate that process.
Regulatory Compliance
As per standard procedure, a registration statement associated with these securities has been duly filed with and accepted by the SEC, illustrating Hagerty's commitment to transparency and regulatory compliance. However, it's crucial to note that this announcement does not serve as an invitation for sale or solicit offers within jurisdictions where it would be illegal.
Understanding Forward-Looking Statements
This announcement also contains several forward-looking statements. These predictions are based largely on current expectations about forthcoming events and may differ from actual outcomes due to various factors. As published, these factors include competition in the industry, the ability to maintain relationships with distribution partners, and management of unforeseen events triggering risk, all of which play pivotal roles in Hagerty’s operations.
About Hagerty, Inc. (NYSE: HGTY)
Hagerty remains dedicated to preserving the culture of driving and encapsulating the love for automobiles for future generations. As a leading name in specialty vehicle insurance, Hagerty is recognized for its insights in expert car valuation, quality car auction services, and community-driven automotive entertainment, targeting over 67 million self-proclaimed car enthusiasts in the U.S. Furthermore, its presence extends across Canada and the U.K., housing the Hagerty Drivers Club, a vibrant community boasting over 900,000 members passionate about vehicles.
Frequently Asked Questions
What is Hagerty's latest secondary offering about?
Hagerty announced an upsized secondary offering of 9.7 million Class A Common Stock shares priced at $9.34 each.
Who are the selling stockholders in this offering?
The selling stockholders are Hagerty Holding Corp. and Aldel LLC.
How are the proceeds from the offering utilized?
The proceeds will support a redemption for the estate of Kim Hagerty regarding HHC shares.
What entities are involved in underwriting this offering?
Keefe, Bruyette & Woods, J.P. Morgan, and other notable financial firms are managing the offering.
What does this offering mean for Hagerty's market position?
This offering underscores Hagerty's commitment to maintaining its strong position in the specialty insurance market while reinforcing investor confidence.
