By Stephanie N. Rotondo
Portland, Ore., March 26 - Arch Capital Group Ltd. priced a $325 million offering of 6.75% series C noncumulative preferred shares, according to a press release issued on Monday.
The deal came in line with price talk and was increased from $250 million.
Wells Fargo Securities LLC, Bank of America Merrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunning managers. Barclays Capital Inc. and J.P. Morgan Securities LLC are the senior co-managers. BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and U.S. Bancorp Investments Inc. are the co-managers.
Dividends will be payable when declared by the board of directors on the last day of March, June, September and December.
The company has the option to redeem the preferreds on or after April 2, 2017.
Arch Capital will apply to list the preferreds on the New York Stock Exchange under the symbol "ARHPC."
Proceeds will be used to redeem the company's 7.875% series B noncumulative preferreds and 8% series A noncumulative preferreds.
Arch Capital Group is a Hamilton, Bermuda-based reinsurance company.
| Issuer: | Arch Capital Group Ltd.
|
| Securities: | Series C noncumulative preferred shares
|
| Amount: | $325 million
|
| Dividend: | 6.75%, payable quarterly
|
| Liquidation amount: | $25
|
| Call option: | On or after April 2, 2017
|
| Bookrunners: | Wells Fargo Securities LLC, Bank of America Merrrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC
|
| Senior co-managers: | Barclays Capital Inc. and J.P. Morgan Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and U.S. Bancorp Investments Inc.
|
| Pricing date: | March 26
|
| Settlement date: | April 2
|
| Expected listing: | NYSE: ARHPC |
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