Company: TIPT
Filing Date: 2025-02-10
Form Type: 8-K
Source: 0001393726-25-000007
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Company: TIPTREE INC.
Filing Date: 2025-02-10
Form: 8-K
Item: Item 1.01
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Item 1.01      Entry into a Material Definitive Agreement.  

Tiptree Holdings LLC, (“ Borrower”), the subsidiary through which Tiptree Inc. (“ Tiptree”) conducts its operations, entered into a Credit Agreement, dated as of February 7, 2025, among Tiptree, Borrower, the lenders party thereto from time to time and Fortress Credit Corp. (“ Fortress”), as administrative agent, collateral agent and lead arranger (the “ Credit Agreement”). Borrower and any guarantors (if any, added after the closing date; it being understood that there are no guarantors on the closing date) are referred to as the “ Loan Parties”.

Borrower borrowed $75 million under the Credit Agreement to, among other things, fund working capital and general corporate purposes. The principal of, and all accrued and unpaid interest on, all loans under the Credit Agreement will mature on the third anniversary of the closing date of the Credit Agreement. Loans under the Credit Agreement bear interest at a variable rate per annum equal to the term Secured Overnight Financing Rate (“ SOFR”) (which adjusted term SOFR is subject to a minimum of 1.00%) plus an applicable margin of 5.25% per annum. The principal amounts of the loans are to be repaid in consecutive quarterly installments.

The obligations under the Credit Agreement and other documents executed in connection therewith are secured by (i) liens on 50% of the common stock of The Fortegra Group, Inc. (“ Fortegra”) owned by Tiptree, with the remaining 50% of Fortegra common stock that is owned by Tiptree remaining unpledged (the “ Unpledged Fortegra Shares”) and (ii) substantially all other assets of Borrower (other than, for the avoidance of doubt, the Unpledged Fortegra Shares and subject to customary exclusions). However, under the terms of the Credit Agreement, for 18 months after closing, Borrower may not pledge the Unpledged Fortegra Shares as collateral to any other lender. Thereafter, Borrower may incur indebtedness secured by the Unpledged Fortegra Shares subject to certain limitations, including a right of first offer and first refusal in favor of Fortress.

The Credit Agreement contains various customary affirmative and negative covenants of (i) the Loan Parties including, but not limited to, limitations on indebtedness, liens, investments and acquisitions, negative pledges, junior payments, conduct of business, transactions with