UNITED STATES | |||||
SECURITIES AND EXCHANGE COMMISSION | |||||
Washington, D.C. 20549 | |||||
FORM | 8-K | ||||
CURRENT REPORT | |||||
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 | |||||
Date of Report (Date of earliest event reported): April 23, 2021 | |||||
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ProAssurance Corporation | |||||
(Exact name of registrant as specified in its charter) |
Delaware | 001-16533 | 63-1261433 | ||||||
(State of Incorporation) | (Commission File No.) | (IRS Employer I.D. No.) |
100 Brookwood Place, | Birmingham, | AL | 35209 | ||||||||
(Address of Principal Executive Office ) | (Zip code) |
Registrant’s telephone number, including area code: | (205) | 877-4400 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-(c) under the Exchange Act (17CFR 240.13e-(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.01 per share | PRA | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | ☐ | ||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
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ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
We are describing an amendment of our Revolving Credit Agreement under “Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.” That description is hereby incorporated by reference into this Item 1.01.We are describing an amendment of our Revolving Credit Agreement under “Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.” That description is hereby incorporated by reference into this Item 1.01.
ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
On April 19, 2021, ProAssurance Corporation amended and restated its revolving line of credit facility to allow for additional indebtedness of a subsidiary related to our planned acquisition of the NORCAL Group. The purpose of the amendment is to allow us to close the acquisition of the NORCAL Group so long as the Contribution Certificates do not exceed $350,000,000. The Contribution Certificates are to be issued on closing of the acquisition to former members of NORCAL Mutual Insurance Company (“NORCAL”) in connection with the Agreement and Plan of Acquisition dated as of February 20, 2020, by and among ProAssurance Corporation, PRA Professional Liability Group, Inc. and NORCAL Mutual Insurance Company (as previously disclosed). This amendment modifies the terms of the original facility that was originally entered into on April 15, 2011 and subsequently amended on November 7, 2019. Under the terms of the Agreement, we may borrow up to the aggregate amount of the unused commitments under the revolving facility at any time prior to the termination of the Agreement. The interest rate we will pay depends on our credit ratings at the time we borrow the money, and on whether the borrowing is secured or unsecured. The Agreement contains customary representations, covenants and events in the event of default.
We anticipate that any funds we borrow under terms of the Revolving Credit Agreement will be used for general corporate purposes, including, but not limited to, use as short-term working capital, funding for share repurchases as authorized by our Board, and for support of other activities we enter into in the normal course of business including mergers and acquisitions.
SIGNATURE
Pursuant to the requirements of the Securities Exchange act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 23, 2021
PROASSURANCE CORPORATION | ||
by: /s/ Jeffrey P. Lisenby | ||
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Jeffrey P. Lisenby General Counsel |
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