Right Capital Structure Clears Path for Financing
Industry: Insurance
Client Profile: Hayhurst Elias Dudek Inc. ("HED") is the largest independent insurance broker in Manitoba and one of the
largest independently-owned insurance brokers in Canada. HED’s head office is located in Winnipeg, with additional offices in Toronto,
Montreal, and Halifax. HED operates three core product segments: i) Commercial Property & Casualty, ii) Life and Health, and iii) Pet
Health Insurance, through its subsidiary SecuriCan General Insurance Company.
NewPoint’s Role: NewPoint was engaged as exclusive financial advisors by HED to recapitalize the buciness. A significant
part of the financing was used to capitalize a new federally regulated insurance buciness specializing in the underwriting of pet insurance
and a smaller portion was used to repurchase a minority shareholders’ interest. NewPoint’s role included developing the appropriate capital
structure, raicing the senior and mezzanine debt required, corresponding with OSFI to ensure compliance with Federal regulations governing
insurance underwriters, and negotiating all related clocing documentation.
Transaction Snapshot: NewPoint was brought in after another advisor unsuccessfully attempted for over 12 months to raise capital.
NewPoint recommended a capital structure that significantly reduced the cost of capital and at the same time made the investment opportunity
much more attractive to institutional investors. The transaction closed within four months of NewPoint being retained.
