DALLAS, Oct. 28 /PRNewswire-FirstCall/ -- GAINSCO, INC. (NYSEAmex :GAN ) today announced that its board of directors approved a special one-time dividend of $1 per share. The special dividend will be payable on November 23, 2010 to shareholders of record on November 9, 2010.
Additionally, the Company announced that its board of directors has approved an amendment to its credit agreement that will allow borrowings up to $5 million on a revolving loan basis until maturity on September 29, 2011. The Company expects to draw up to $1.5 million against this agreement prior to payment of the special dividend. The $0.9 million outstanding as of June 30, 2010 under the credit agreement was repaid during the third quarter 2010.
The Company believes that, at its current size, it has more than adequate capital to support its insurance operations, and that it is appropriate to return some capital to shareholders through a one-time cash dividend.
GAINSCO, INC. is a Dallas, Texas-based holding company established in 1978. The Company, through its insurance brand, GAINSCO Auto Insurance®, specializes in minimum-limits personal auto coverage and actively distributes its nonstandard personal auto products through independent retail agents in Florida, Georgia and South Carolina (Southeast Region) and in Arizona, New Mexico and Texas (Southwest Region). Its insurance company subsidiary is MGA Insurance Company, Inc.
SOURCE GAINSCO, INC.