Palomar Holdings Completes $311M Gray Surety Acquisition, Secures $450M Credit Facility

summarizeSummary

Palomar Holdings completed its previously announced acquisition of The Gray Casualty & Surety Company for approximately $311 million, simultaneously closing a new $450 million unsecured credit facility to fund the transaction and for general corporate purposes.

check_boxKey Events

• Acquisition of Gray Surety Completed

  Palomar Holdings, Inc. completed the acquisition of The Gray Casualty & Surety Company for approximately $311 million in cash on January 31, 2026. This acquisition is expected to strengthen Palomar's surety franchise by adding scale and geographic reach.

• New $450 Million Unsecured Credit Facility Closed

  The company closed a new $450 million unsecured credit facility on January 27, 2026, comprising a $150 million revolving facility and a $300 million term loan. The facilities mature on January 27, 2031.

• Acquisition Funding and Refinancing

  The $311 million acquisition was funded using proceeds from the new term loan and cash on hand. The new credit facility also allows for general corporate purposes and refinancing of existing indebtedness, replacing a prior $100 million credit facility.

auto_awesomeAnalysis

Palomar Holdings has successfully completed a significant strategic acquisition, expanding its surety franchise and aligning with its 'Palomar 2x strategic framework'. The simultaneous closing of a substantial $450 million unsecured credit facility, which includes a $300 million term loan to fund the acquisition and a $150 million revolving facility for general corporate purposes, demonstrates the company's ability to secure capital for growth. This new financing replaces a smaller, existing credit facility, indicating increased financial flexibility and capacity for future operations. The transaction is expected to add scale and geographic reach to Palomar's surety business.