Kingsway Financial Services Inc. and its newly formed wholly owned subsidiary Kingsway 2007 General Partnership announced the closing today of the public offering of $100 million principal amount of 6% senior unsecured debentures of Kingsway 2007.

The yield on the debentures to maturity is 6.044%.

The debentures were sold through a syndicate of underwriters led by Scotia Capital Inc. and including RBC Dominion Securities Inc. The selling group included Keefe, Bruyette & Woods, Inc. and Bear, Stearns & Co. Inc.

The net proceeds of the offering amount to approximately $99,188,000, after application of the underwriters’ discount and commission, and are expected to be used to provide additional capital to Kingsway and its indirect and direct subsidiaries to support the expected growth of business and for general corporate purposes, which will include the payment of approximately US$93 million of the amount outstanding under its revolving credit facility.

The debentures are jointly and severally guaranteed by Kingsway and Kingsway America Inc. The guarantee of Kingsway is an unsecured senior obligation of Kingsway, ranks equally with all of Kingsway’s other unsecured senior indebtedness and ranks senior to all existing and future subordinated indebtedness of Kingsway. The guarantee of Kingsway America is an unsecured senior obligation of Kingsway America, ranks equally with all of Kingsway America’s other unsecured senior indebtedness and ranks senior to all existing and future subordinated indebtedness of Kingsway America.