KFS - Kingsway Financial Services sells Texas railyard

• Kingsway Financial Services ( NYSE: KFS ) said Thursday it closed on the sale of its railyard in Texas to BNSF Dayton, which also assumed the mortgage.
• The deal amount was $215.2M, consisting of $44.5M cash and $170.7M of mortgage assumption, netting proceeds of $21.4M to Kingsway ( KFS ) after taxes, fees and distribution to the minority shareholder.
• Proceeds from the sale will be used in exercising Kingsway's ( KFS ) options to repurchase its TruPs subordinated debt and other corporate purposes.
• Kingsway ( KFS ) has options to repurchase $51.8M fair value (or $75.5M principal value) of its subordinated debt and $19.2M of deferred interest (both as of September 30 ) for $59.4M.
• "The sale of the railyard is a major milestone in monetizing legacy assets and simplifying our balance sheet. With this sale – along with the sale of Flower Portfolio – our notes payable and subordinated debt as of December 31 will be $183.2M lower (or 70%) than it was as of September 30," said CEO John Fitzgerald.
• Earlier, Kingsway ( KFS ) acquired LA-based Secure Nursing Service for $10.9M .

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