Endurance Specialty to sell $100 million noncumulative preferreds; price talk around 6.5%

By Stephanie N. Rotondo

Seattle, Nov. 17 – Endurance Specialty Holdings Ltd. is looking to sell at least $100 million of series C noncumulative perpetual preferred shares (expected ratings: Ba1/BBB-), according to a market source on Tuesday.

Price talk is around 6.5%. The preferreds will be issued as depositary shares representing a 1/1,000th interest.

Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.

Dividends will be payable on the 15th day of March, June, September and December, beginning March 15, 2016.

The preferreds become redeemable Dec. 15, 2020 at par plus accrued dividends. The preferreds can be redeemed prior to that date upon a capital disqualification or tax event at $26.00 per share plus accrued dividends.

The new securities will be listed on the New York Stock Exchange under the ticker symbol “ENHPC.”

Proceeds will be used with cash on hand to redeem all outstanding 7.75% series A noncumulative preferreds (NYSE: ENHPA), which become redeemable Dec. 15. Remaining proceeds will be used for general corporate purposes, which may include ordinary share and debt repurchases and to support underwriting activities.

Endurance Specialty in a Pembroke, Bermuda-based specialty insurance provider.

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