Palomar completes acquisition of Gray Surety

Core Viewpoint - Palomar Holdings, Inc. has successfully completed the acquisition of The Gray Casualty & Surety Company, enhancing its position in the surety sector with a total cash consideration of $300 million [1][2]. Group 1: Acquisition Details - The acquisition was initially announced in October 2025, with Palomar agreeing to acquire Gray Surety from Bernhard Capital Partners and The Gray Insurance Company for a total cash consideration of $300 million [2]. - The financing for the acquisition includes a $150 million revolving credit facility and a $300 million term loan [2]. Group 2: Financing Arrangements - U.S. Bank National Association and KeyBank National Association served as Joint Lead Arrangers and Joint Book Runners for the financing [3]. - U.S. Bank acted as Administrative Agent, while KeyBank served as Syndication Agent [3]. - Additional banks involved in the financing include Citizens Bank, The Huntington National Bank, PNC Bank, and Wells Fargo Bank, with JPMorgan Chase Bank participating in the term loan [3]. Group 3: Management Commentary - Mac Armstrong, Chairman and CEO of Palomar, expressed satisfaction with the successful closing of the acquisition, highlighting Gray Surety's exceptional management team [4]. - The transaction is expected to significantly strengthen Palomar's surety franchise, adding scale and geographic reach, and complementing existing operations [5]. - The acquisition aligns with Palomar's strategic framework aimed at building a market leader in the surety sector [5].