By Andrea Heisinger
New York, Sept. 22 - Alterra Finance LLC priced $350 million of 6.25% guaranteed 10-year senior unsecured notes on Wednesday to yield 6.25%, a source who worked on the sale said.
The notes (Baa2/BBB) priced at 99.999 with a spread of 371.5 basis points. They are callable at a make-whole of 50 bps over Treasuries.
Bank of America Merrill Lynch, Citigroup Global Markets and Wells Fargo Securities LLC were bookrunners.
Proceeds are being lent to direct parent Alterra Holdings USA to repay a $200 million revolving loan under an amended credit agreement dated June 12, 2007.
The deal is guaranteed by Alterra Capital Holdings Ltd.
The specialty insurance company is based in Bernardsville, N.J.
| Issuer: | Alterra Finance LLC
|
| Guarantor: | Alterra Capital Holdings Ltd.
|
| Issue: | Senior unsecured notes
|
| Amount: | $350 million
|
| Maturity: | Sept. 30, 2020
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets, Wells Fargo Securities LLC
|
| Coupon: | 6.25%
|
| Price: | 99.999
|
| Yield: | 6.25%
|
| Spread: | Treasuries plus 371.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | Sept. 22
|
| Settlement date: | Sept. 27
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
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