Meadowbrook Insurance Group, Inc. Announces Closing on Its Bank Facility to Finance...

Meadowbrook Insurance Group, Inc. Announces Closing on Its Bank Facility to
Finance Its Merger With ProCentury

SOUTHFIELD, Mich., July 31 /PRNewswire-FirstCall/ -- Meadowbrook Insurance
Group, Inc. (NYSE: MIG) announced today it has successfully executed its $100
million senior credit facilities (the "Credit Facilities") arranged by Banc of
America Securities LLC. The Credit Facilities include a $65 million term loan
facility, which will be fully funded at the closing of the merger with
ProCentury Corporation and a $35 million revolving credit facility, which is
expected to be partially funded at closing. The actual amount of the combined
credit facility to be utilized at closing will vary depending upon
Meadowbrook's share price as calculated in accordance with the merger
agreement. The undrawn portion of the revolving credit facility is intended
to be available post-closing to finance working capital and for general
corporate purposes, including but not limited to, surplus contributions to our
insurance company subsidiaries to support premium growth or strategic
acquisitions by the Company.
The Credit Facilities replace the Company's prior revolving credit
agreement which was terminated upon the execution of the Credit Facilities.
Meadowbrook's President and Chief Executive Officer, Robert S. Cubbin,
stated: "We are pleased to announce the successful execution of our credit
facilities and we are extremely satisfied with how Banc of America Securities
managed the process. We look forward to closing on the merger with ProCentury
Corporation and are very enthusiastic about combining these two disciplined
operations."
About Meadowbrook Insurance Group
A leader in the specialty program management market, Meadowbrook is a risk
management organization, specializing in alternative risk management solutions
for agents, professional/trade associations, and small to medium-sized
insureds. Meadowbrook Insurance Group, Inc. common shares are listed on the
New York Stock Exchange under the symbol "MIG". For further information,
please visit Meadowbrook's corporate web site at www.meadowbrook.com .
This release may contain certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Act of 1934 as amended. These include statements as to
the benefits of the merger, including future financial and operating results,
cost savings, enhanced revenues and the accretion/dilution to reported
earnings that may be realized from the merger as well as other statements of
expectations regarding the merger and any other statements regarding future
results or expectations. Meadowbrook intends such forward-looking statements
to be covered by the safe harbor provisions for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995 and is
including this statement for purposes of these safe harbor provisions.
Forward-looking statements, which are based on certain assumptions and
describe future plans, strategies, and expectations of Meadowbrook, are
generally identified by the use of words such as "believe," "expect,"
"intend," "anticipate," "estimate," or "project" or similar expressions.
Meadowbrook's ability to predict results, or the actual effect of future plans
or strategies, is inherently uncertain. Factors which could have a material
adverse effect on the operations and future prospects of Meadowbrook and its
respective subsidiaries include, but are not limited to: the risk that the
businesses of Meadowbrook in connection with the merger will not be integrated
successfully or such integration may be more difficult, time-consuming or
costly than expected; expected revenue synergies and cost savings from the
merger may not be fully realized or realized within the expected time frame;
revenues following the merger may be lower than expected; and customer and
employee relationships and business operations may be disrupted by the merger.
Other factors that could cause Meadowbrook's actual results to differ
materially from those expressed or implied are discussed under "Risk Factors"
in its most recent annual report on Form 10-K and other filings with the
Securities and Exchange Commission ("SEC"). Meadowbrook does not undertake
any obligation to (and expressly disclaims any such obligation to) update or
alter its forward-looking statements whether as a result of new information,
future events or otherwise.
SOURCE Meadowbrook Insurance Group, Inc.

Karen M. Spaun, SVP & Chief Financial Officer, +1-248-204-8178, or Holly
Moltane, Director of External Financial Reporting, +1-248-204-8590, both of
Meadowbrook Insurance Group, Inc.