Kingsway Financial Services Inc (NYSE:KFS) saw its shares inch higher in price Monday on fourth-quarter financial figures.
The company reported Friday adjusted net income of $1 million for the fourth quarter, versus a year-ago loss of $0.7 million.
Last December, Kingsway closed on its acquisition of PWI Holdings, Inc. (collectively with its subsidiaries Preferred Warranties, Inc., Superior Warranties, Inc., Preferred Warranties of Florida , Inc., and Preferred Nationwide Reinsurance Company, Ltd.) for a total purchase price of $24.4 million. The addition of PWI further strengthens Kingsway's position in the vehicle service contract and extended warranty industry.
In connection with the acquisition, Kingsway fully repaid a legacy loan to Kingsway Warranty Holdings LLC Kingsway financed the acquisition and the payoff of the KWH Legacy Loan with a combination of debt financing provided by CIBC Bank USA and cash on hand.
KWH borrowed a total of $25.7 million, $24.7 million in the form of a term loan and $1 million in the form of a revolver. The KWH New Loan has a variable interest rate, with the initial annual interest rate equal to 3.75%
Kingsway is a holding company that owns or controls subsidiaries primarily in the extended warranty, asset management and real estate industries.
KFS shares picked up three cents to $4.53.
