By Stephanie N. Rotondo
Seattle, Nov. 17 – Endurance Specialty Holdings Ltd. priced $200 million of 6.35% series C noncumulative perpetual preferred shares (expected ratings: Ba1/BBB-) on Tuesday, according to a market source.
Price talk was 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.
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.
| Issuer: | Endurance Specialty Holdings Ltd.
|
| Securities: | Series C noncumulative preferred stock
|
| Amount: | $200 million, or 8 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Dividend: | 6.35%
|
| Price: | Par of $25.00
|
| Yield: | 6.35%
|
| Talk: | 6.5% area
|
| Call options: | On or after Dec. 15, 2020 at par plus accrued dividends or prior to that date upon a capital disqualification or tax event at $26 per share plus accrued dividends
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 24
|
| Expected ratings: | Moody’s: Ba1
|
| Standard & Poor’s: BBB-
|
| Expected listing: | NYSE: ENHPC
|
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