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FIRST MERCURY FINANCIAL CORPORATION PRICES SECOND OFFERING
Glencoe Capital Portfolio Company to Offer 3.3 Million Shares of Common Stock
(SOUTHFIELD, Mich., June 15, 2007) -- First Mercury Financial Corporation (NYSE: FMR) today announced the pricing of its secondary offering of 3,301,260 shares of its common stock at $19.25 per share.
Of the shares, 200,000 shares are being offered by First Mercury Financial Corporation and 3,101,260 are being offered by selling stockholders identified in the prospectus, including Glencoe Capital LLC and First Mercury's founder, Jerome Shaw. Glencoe Capital will no longer own shares in First Mercury after completion of this offering.
In addition, the underwriters have an option to purchase up to 495,189 additional shares from First Mercury to cover possible over-allotments. First Mercury will not receive any of the proceeds from the sale of the selling stockholders' shares. The offering is expected to close on June 20, 2007, subject to customary closing conditions.
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on June 14, 2007. This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, and none of these securities may be sold in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.
About Glencoe Capital
Founded in 1993 and based in Chicago, Glencoe Capital focuses on leveraged buyouts of middle-market businesses valued between $30 million and $150 million. The firm's proprietary Executive Network is a group of successful Fortune 1000 business executives, entrepreneurs and other business leaders who source deals and provide operational and strategic expertise to portfolio companies. Glencoe Capital invests throughout the U.S. and Canada.
About First Mercury Financial Corporation
First Mercury Financial Corporation markets and underwrites specialty commercial insurance products, focusing on niche and underserved segments where the Company has underwriting expertise and other competitive advantages. During the Company's 34 years of underwriting risks, First Mercury has established CoverX(R) as a recognized brand among insurance agents and brokers. As primarily an excess and surplus (E&S) lines underwriter, First Mercury has developed the underwriting expertise and cost-efficient infrastructure which has enabled it to effectively underwrite such risks. For more information, visit www.firstmercury.com.
Safe Harbor Statement
This release contains forward-looking statements that relate to future periods and includes statements regarding our anticipated performance. Generally, the words "anticipates," "believes," "expects," "intends," "estimates," "projects," "plans" and similar expressions identify forward- looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors include, among others: our ability to maintain or the lowering or loss of one of our financial or claims-paying ratings; our actual incurred losses exceeding our loss and loss adjustment expense reserves; the failure of reinsurers to meet their obligations; our inability to obtain reinsurance coverage at reasonable prices; the failure of any loss limitations or exclusions or changes in claims or coverage; our lack of long-term operating history in certain specialty classes of insurance; our ability to acquire and retain additional underwriting expertise and capacity; the concentration of our insurance business in relatively few specialty classes; competition risk; fluctuations and uncertainty within the excess and surplus lines insurance industry; the extensive regulations to which our business is subject and our failure to comply with these regulations; our ability to maintain our risk-based capital at levels required by regulatory authorities; our inability to realize our investment objectives; and the risks identified in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. Given these uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. We assume no obligation to update or revise them or provide reasons why actual results may differ.
Contact
Edward A. LaFramboise
Vice President - Finance
First Mercury Financial
+1-248-213-0406
elaframboise@firstmercury.com
Investor Inquiries
Leslie Loyet
Financial Relations Board
+1-312-640-6672
lloyet@frbir.com
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