By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Jan. 12 – Enstar Finance LLC priced a $500 million offering of $1,000-par 20-year fixed-rate reset junior subordinated notes (BB+/BB+) with an initial coupon of 5½% on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
Enstar Group Ltd. will guarantee the notes on a junior subordinated basis.
Barclays, BMO Capital Markets Corp., HSBC Securities (USA) Inc., Wells Fargo Securities, LLC, ING Financial Markets LLC, J.P. Morgan Securities LLC, nabSecurities, LLC, Scotia Capital (USA) Inc and Truist Securities, Inc. are the bookrunners.
The coupon resets on Jan. 15, 2027 and every five years thereafter at the Treasury rate plus 400.6 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.
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| Amount: | $500 million
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| Issue: | Fixed-rate reset rate junior subordinated notes
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| Maturity: | Jan. 15, 2042
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| Bookrunners: | Barclays, BMO Capital Markets Corp., HSBC Securities (USA) Inc., Wells Fargo Securities, LLC, ING Financial Markets LLC, J.P. Morgan Securities LLC, nabSecurities, LLC, Scotia Capital (USA) Inc and Truist Securities, Inc.
|
| Senior co-manager: | Commonwealth Bank of Australia
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| Junior co-managers: | Commerz Markets LLC, NatWest Markets Securities Inc., SG Americas Securities, LLC and SMBC Nikko Securities America, Inc.
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| Coupon: | 5½% until Jan. 15, 2027, then resets to fixed rate equal to Treasuries plus 400.6 bps
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| Price: | Par of $1,000
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| Yield: | 5½%
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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
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 14
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| Ratings: | S&P: BB+
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| Fitch: BB+
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| Distribution: | SEC registered
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| Cusip: | 29360AAB6
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