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Hagerty Unveils Significant Secondary Stock Offering

Hagerty, Inc., the name renowned among automotive enthusiasts and a leading provider of specialty vehicle insurance, has announced an important financial move as it prepares to offer 8,700,000 shares of its Class A Common Stock in an underwritten secondary public offering. The holding company Hagerty Holding Corp. and Aldel LLC, the Selling Stockholders in this offering, are set to enhance their capital structure.

Details of the Offering

The secondary public offering is designed for newly initiated investors and current stockholders seeking to recalibrate their holdings. The Selling Stockholders have further granted the underwriters a 30-day option to acquire an additional 1,305,000 shares. It's crucial to note that Hagerty will not benefit from any of the proceeds derived from this stock sale, as the Selling Stockholders are responsible for the underwriting discounts and commissions.

The objective behind this offering is rooted in a desire to streamline financial operations; HHC has indicated that the net proceeds from its shares will be utilized for redeeming a corresponding number of its own shares to benefit the estate of the late Kim Hagerty.

Underwriting and Management

The underwriters for this significant offering include Keefe, Bruyette & Woods, a Stifel Company, and J.P. Morgan, who are taking the lead as bookrunning managers. Additionally, BMO Capital Markets, Citizens Capital Markets, and Wells Fargo Securities will serve as additional managers, with Oppenheimer & Co. acting as a co-manager. This team of experienced financial entities indicates Hagerty's commitment to a well-structured offering, aimed at maximizing investor interest and participation.

Regulatory Considerations

In line with compliance protocols, Hagerty has filed a registration statement, including a prospectus with the Securities and Exchange Commission (SEC) to facilitate this offering. Interested investors are advised to review the registration statement for complete insights regarding the issuer and the offering, as well as the associated risks. These documents can be accessed for free via the SEC's EDGAR website at www.sec.gov.

Market Conditions and Projections

Hagerty's decision for this offering comes on the heels of a broader trend in the market, where companies are increasingly looking for additional capital amid uncertain economic conditions. The company's strategic approach involves engaging creative solutions to bolster its market position while managing existing obligations. However, the press release also includes cautionary statements about the unpredictability of market behavior which may affect the anticipated outcomes from this stock offering.

About Hagerty

Hagerty thrives as an automotive enthusiast brand dedicated to preserving the art of driving, ensuring that automotive culture persists for generations to come. The company holds a leadership position in specialty vehicle insurance and boasts a vast membership community, including the Hagerty Drivers Club comprising over 900,000 members. The brand’s commitment to car enthusiasts is evident through its vast array of services, which extend across the U.S., Canada, and the U.K. For more insights about the company, visit www.hagerty.com or follow them on various social media platforms.

In conclusion, Hagerty's secondary stock offering not only underscores its proactive approach to finance and capital but also resonates with its enduring mission of nurturing car culture among enthusiasts.