Montpelier Re Holdings plans perpetual preferred stock sale at $25

By Andrea Heisinger

New York, May 2 - Montpelier Re Holdings Ltd. announced a $75 million sale of perpetual non-cumulative preferred shares, series A, on Monday, according to a 424B5 filing with the Securities and Exchange Commission and a market source.

Price talk is whispered in the 9% area. The deal is likely to be upsized, the source said, and pricing is expected Tuesday.

The 3 million preferreds (BB+/BB+) will be priced at $25 each. They are callable starting in 2016.

Merrill Lynch is the bookrunner.

Proceeds will be used to support the underwriting activities of insurance and reinsurance subsidiaries.

The insurance and reinsurance company is based in Pembroke, Bermuda.

Stephanie N. Rotondo contributed to this story

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