GlobeNewswire·May 6, 2026, 4:05 PM ET

Root Lowers Cost of Capital Through Refinancing and Announces $75 Million Share Repurchase Program

Root, Inc. refinanced its existing $200 million debt into a new senior secured term loan led by The Huntington National Bank.
The new term loan matures on May 4, 2029, & was used to repay the prior facility with BlackRock.
Interest on the new facility is priced at SOFR + 3.25%, representing a 225 basis point reduction from the previous loan.
The refinancing is expected to generate approximately $4.5 million in annual interest expense savings.
Root will expense approximately $4.8 million in Q2 2026 related to unamortized costs & a prepayment premium from the prior loan.
Root's board authorized a share repurchase program of up to $75 million with no fixed expiration date.
The repurchase program may utilize various methods, including open market purchases, privately negotiated transactions, or Rule 10b5-1 trading plans.
These actions optimize Root's capital structure & reflect its commitment to enhancing long-term stockholder value.