By Ronda Fears
Nashville, Nov. 26 - Chubb Corp. sold $525 million of three-year mandatory convertibles at par of 25 to yield 7.0% with a 22% initial conversion premium, via joint lead managers Goldman Sachs & Co. and Salomon Smith Barney.
The deal sold at the rich end of revised guidance that put the yield at 7.0% to 7.25% and initial conversion premium at 20% to 22%. Original guidance put the yield at 7.25% to 7.75% and premium between 18% and 22%.
Chubb said proceeds would be used for general corporate purposes, including capital contributions to insurance subsidiaries.
There is a $75 million greenshoe.
Terms of the new deal are:
| Issuer: | Chubb Corp.
|
| Amount: | $525 million
|
| Greenshoe: | $75 million
|
| Lead managers: | Goldman Sachs and Salomon Smith Barney
|
| Co-managers: | Credit Suisse First Boston, Deutsche Bank and Merrill Lynch
|
| Maturity date: | Nov. 16, 2005
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| Dividend: | 7.0%
|
| Issue price: | par, $25
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| Yield: | | 7.0%
|
| Conversion premium: | 22%
|
| Conversion price: | $56.64/$69.10
|
| Conversion ratio: | 0.3618/0.4414
|
| Call: | Non-callable
|
| Ratings: | Moody's: A1 (expected)
|
| S&P: A+
|
| Settlement date: | Dec. 2
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