By Chris Munro

June 18 - (The Insurer) - Trucordia has followed its $1.3 billion strategic investment from Carlyle with a debt refinancing that the top 20 U.S. broker said enhances its capital structure and positions the business for further growth.

The refinancing, which the company announced on Wednesday morning, includes a $1.94 billion first lien term loan B, along with a $548 million second lien term loan B with Blue Owl Capital.

Trucordia will also have access to a $400 million revolving credit facility that will support future investments, including mergers and acquisitions.

The Lindon, Utah-based company said the proceeds from the refinancing replace its existing unitranche debt and significantly improves its cost of capital and long-term financial flexibility.

News of the debt refinancing follows Trucordia receiving a $1.3 billion investment from Carlyle, a deal that valued the broker at $5.7 billion.

Trucordia, which rebranded from PCF in October 2023, said the Carlyle investment reduces its leverage and simplifies its governance structure by repurchasing units from existing minority investors.

It also provides the company with long-term financial flexibility to pursue a variety of strategic outcomes.

“These transactions are transformative for Trucordia, creating new financial and governance structures that will support the company’s continued growth,” said Felix Morgan, Trucordia’s CEO.

“They reflect both the significant work we have done in the last four years to build the nation’s next great insurance brokerage and the confidence in our strategy to accelerate our success,” Morgan added.

JPMorgan Chase served as Trucordia’s financial advisor, and will also serve as administrative agent for the revolving credit facility. Orrick served as legal counsel to Trucordia.