Root Announces Closing of New Term Loan Facility with
COLUMBUS, Ohio, Jan. 26, 2022 (GLOBE NEWSWIRE) — Root, Inc. (NASDAQ: ROOT), the parent company of Root Insurance Company, announced that it has entered into a new term loan facility with BlackRock Financial Management Inc. ., on behalf of the funds and accounts under its management, and its affiliates and co-investors (collectively “BlackRock”). The five-year, $300 million term loan will bear a SOFR + 9% term interest rate. In conjunction with the term loan, Root issued BlackRock warrants equal to 2% of all issued and outstanding shares on a diluted basis at an exercise price of $9.00 per share, the date of expiration is the earlier of the maturity of the term loan or the full cash repayment of the term loan.
“We are delighted with the successful execution of this new term facility. He has achieved several important goals, including extending our debt maturity and improving our liquidity position with a partner focused on Root’s long-term success,” said Root Co-Founder and CEO. , Alex Timm. “We are executing a disciplined strategy to create sustainable value through strong underwriting results, the development of our integrated product and prudent capital management.”
Mark Lawrence, Managing Director of BlackRock’s Global Credit Team, said: “We are delighted to form a long-term partnership with Root, an automotive insurtech company with differentiated technology, and we recognize the potential of the product. innovative integrated system that the company is developing through their exclusive partnership with Carvana.
About Root, Inc.
Root, Inc. is the parent company of Root Insurance Company. Root is revolutionizing insurance through data science and technology to provide consumers with a personalized, simple and fair experience.
Vice President, Investor Relations
Source: RACINE, INC.
This press release contains forward-looking statements within the meaning of the federal securities laws regarding Root, Inc. These forward-looking statements relate to, among other things, expectations regarding our future business results. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the company’s control and are difficult to predict. We have based our forward-looking statements on our current expectations, estimates and projections about our industry and our business. We caution that these statements are not guarantees of future performance and that you should not place undue reliance on them, as they involve risks, uncertainties and assumptions that we cannot predict and many of which are beyond our control. Accordingly, our actual results may differ materially from the future performance that we have expressed or projected in our forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, we have included in Root’s Form 10-K for the fiscal year ended December 31, 2020 and in other filings with the SEC, a cautionary statement identifying important factors, but not necessarily all such factors, that could cause future results to differ materially from those set forth in the forward-looking statements. Copies of Root’s Form 10-K and other SEC filings are available on the SEC’s website at Root’s website at https://ir.joinroot.com/investor -relations or by contacting Root’s Investor Relations Office.