Markel and Alterra give tender offer results for 5.35%, 6.25% notes

Chicago, Sept. 18 – Markel Corp. and its wholly owned subsidiary Alterra Finance LLC began tender offers for any and all of two series of notes, according to a company notice.

There were $97,760,000 notes tendered from Markel’s $250 million 5.35% senior notes due 2021.

And, $125,311,000, inclusive of $104,000 tendered subject to guaranteed delivery procedures, was tendered in the offer for Alterra’s $350 million 6.25% senior notes due 2020.

Pricing was set using a reference Treasury. For the 5.35% notes from Markel, the formula was 35 basis points over the 2.125% Treasury due May 31, 2021.

And, for Alterra’s 6.25% notes, the formula is 50 bps over the 2.75% Treasury due Sept. 30, 2020. Prices were calculated at 2 p.m. ET on Sept. 18.

Accordingly, for each $1,000 principal amount of Markel’s $250 million 5.35% senior notes due 2022, the consideration is $1,053.60.

And, for each $1,000 principal amount of Alterra’s $350 million 6.25% senior notes due 2020, the consideration is $1,038.70.

The tender offer will settle on Sept. 23 and all notes are expected to be accepted for purchase.

As previously reported, the tender offer is conditional upon financing and Markel priced $800 million in new notes on Sept. 13.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4756) and Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) are the dealer managers.

Global Bondholder Services Corp. is the information agent (212 430-3774, 866 924-2200 or contact@gbsc-usa.com).

Markel is a Richmond, Va., provider of specialty insurance products.

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