TORONTO, Dec. 27 /CNW/ - (TSX:KFS, NYSE: KFS) Kingsway Financial Services
Inc. ("Kingsway") announced today that it has entered into a 365 day
C$70 million credit facility agreement with a syndicate of banks. This credit
facility is supplemental to the existing US$175 million credit facility that
matures in June, 2009.
"We are pleased that our relationships with our banking partners have
enabled us to obtain this additional flexibility particularly at this time
when credit conditions in the markets are challenging", said Shaun Jackson,
Executive Vice President and CFO of Kingsway Financial. "We have undrawn
amounts under our current facility but will utilize these new funds to repay
our maturing 8.25% C$78 million debentures on December 31, 2007 at a lower
The Bank of Nova Scotia acted as Administrative Agent, Lead Arranger and
Bookrunner and the Royal Bank of Canada acted as Documentation Agent.
Forward Looking Statements
This press release includes "forward looking statements" that are subject
to risks and uncertainties. For information identifying important factors that
could cause actual results to differ materially from those anticipated in the
forward looking statements, see Kingsway's securities filings, including its
2006 Annual Report under the heading Risk Factors in the Management's
Discussion and Analysis section. The securities filings can be accessed on the
Canadian Securities Administrators' website at www.sedar.com, and on the EDGAR
section of the U.S. Securities and Exchange Commission's website at
www.sec.gov or through the Company's website at www.kingsway-financial.com.
The Company disclaims any intention or obligation to update or revise any
forward looking statements, whether as a result of new information, future
events or otherwise.
About the Company
Kingsway Financial Services Inc. is one of the largest truck insurers and
non-standard automobile insurers in North America based on A.M. Best data that
we have compiled. Kingsway's primary business is trucking insurance and the
insuring of automobile risks for drivers who do not meet the criteria for
coverage by standard automobile insurers. The Company currently operates
through thirteen wholly-owned insurance subsidiaries in Canada and the U.S..
Canadian subsidiaries include Kingsway General Insurance Company, York Fire &
Casualty Insurance Company and Jevco Insurance Company. U.S. subsidiaries
include Universal Casualty Company, American Service Insurance Company,
Southern United Fire Insurance Company, Lincoln General Insurance Company,
U.S. Security Insurance Company, American Country Insurance Company, Zephyr
Insurance Company, Mendota Insurance Company, Mendakota Insurance Company and
Avalon Risk Management, Inc. The Company also operates reinsurance
subsidiaries in Barbados and Bermuda.
The common shares of Kingsway Financial Services Inc. are listed on the
Toronto Stock Exchange and the New York Stock Exchange, under the trading
%SEDAR: 00003152E %CIK: 0001072627
For further information:
For further information: Shaun Jackson, Executive Vice President and
Chief Financial Officer, Tel: (905) 629-7888, Fax: (905) 629-5008, Web Site: