By Rebecca Melvin
New York, Sept. 25 - Maiden Holdings Ltd. priced an upsized $150 million of three-year mandatory convertible preferred shares, with a $50 liquidation price, with a 7.25% dividend and an initial conversion premium of 25%, according to a syndicate source.
The registered offering of series B preference shares was initially seen at $135 million in size. There is a $15 million greenshoe.
Pricing came at the midpoint of talk, which was for a 7% to 7.5% dividend and a 22.5% to 27.5% premium.
Joint boorunning managers were Goldman Sachs & Co., Morgan Stanley & Co. LLC and BofA Merrill Lynch.
Proceeds will be used for general corporate purposes, primarily to support continuing growth of its reinsurance operations, with remaining proceeds to be invested in marketable fixed income securities and short-term investments.
Maiden Holdings is a Hamilton, Bermuda-based reinsurance holding company.
| Issuer: | Maiden Holdings Ltd.
|
| Issue: | Mandatory convertible preferred shares
|
| Amount: | $150 million (3 million shares), upsized from $135 million
|
| Greenshoe: | $15 million (300,000 shares)
|
| Maturity: | Sept. 1, 2016
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, BofA Merrill Lynch
|
| Dividend: | 7.25%
|
| Liquidation price: | $50.00
|
| Premium: | 25%
|
| Maximum settlement rate: | 4.0322 shares
|
| Minimum settlement rate: | 3.2258 shares
|
| Price talk: | 7%-7.5%, up 22.5%-27.5%
|
| Pricing date: | Sept. 25
|
| Settlement date: | Oct. 1
|
| Stock symbol: | Nasdaq: MHLD
|
| Stock reference price: | $12.40 as of close Sept. 25
|
| Market capitalization: | $900 million
|
| Distribution: | Registered
|
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