By James McCandless
San Antonio, Aug. 19 – Enstar Finance LLC priced a $350 million offering of $1,000-par 20-year fixed-rate reset junior subordinated notes (BB+/BB+) with an initial coupon of 5¾%, according to an FWP filing with the Securities and Exchange Commission.
The offering was announced on Monday.
Enstar Group Ltd. will guarantee the notes on a junior subordinated basis.
Wells Fargo Securities, LLC, Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, ING Financial Markets LLC, nabSecurities, LLC, Scotia Capital (USA) Inc. and Truist Securities, Inc. are the bookrunners.
Coupons are payable on March 1 and Sept. 1, starting on Sept. 1, 2021.
The coupon resets on Sept. 1, 2025 and every five years thereafter at the Treasury rate plus 546.8 basis points.
The notes are redeemable within six months of each reset date at par. The notes are also redeemable after a change in law at par, a tax event at par, or after a rating agency event at 102.
Enstar plans to use the proceeds for general corporate purposes, including, but not limited to, repayment of borrowings, funding for acquisitions, working capital and other business opportunities.
The company does not plan to list the notes on any securities exchange.
Enstar is a Bermuda-based insurance provider.
| Issuer: | Enstar Finance LLC
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| Guarantor: | Enstar Group Ltd. on junior subordinated basis
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| Description: | Fixed-to-floating rate junior subordinated notes
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| Amount: | $350 million
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| Maturity: | Sept. 1, 2040
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| Bookrunners: | Wells Fargo Securities, LLC, Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, ING Financial Markets LLC, nabSecurities, LLC, Scotia Capital (USA) Inc. and Truist Securities, Inc.
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| Senior co-managers: | Commerz Markets LLC and Commonwealth Bank of Australia
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| Junior co-managers: | BMO Capital Markets Corp. and Lloyds Securities Inc.
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| Coupon: | 5¾% until Sept. 1, 2025, then converts to a floating rate of Treasuries plus 546.8 bps
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| Price: | Par of $1,000
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| Yield: | 5¾%
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| Call: | Within six months of each reset date at par; prior to that, after a change in law at par, a tax event at par, or after a rating agency event at 102
|
| Pricing date: | Aug. 19
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| Settlement date: | Aug. 26
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| Distribution: | SEC registered
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