May 26, 2003 by Canadian Underwriter
Kingsway Financial Services Inc. (TSX: KFS) has completed the second private placement of 30-year floating rate trust preferred securities amounting to US$15 million. The company will receive about US$14.5 million in proceeds from the placement. Kingsway recently made a similar placement which generated net proceeds of US$17 million.
A statement released by Kingsway notes that, combining the proceeds of the two debt placements with the company’s net income of 24.4 million reported for the first quarter of 2003, the result has been a net inflow to the capital base of approximately $70 million since the beginning of this year. “We are pleased to be able to complete these transactions as the additional capital will support the continued profitable growth of our business and allow us to take advantage of the significant opportunities we are seeing in our industry,” says Bill Star, president of Kingsway.