By Stephanie N. Rotondo
Seattle, Aug. 14 – Arch Capital Group Ltd. sold an upsized $200 million of 5.45% series F noncumulative preferred stock (expected ratings: BBB/BBB) at par of $25.00, a market source reported on Monday.
Price talk was initially around 5.5%. It was later revised to 5.45%.
The deal was also upsized from $150 million.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and J.P. Morgan Securities LLC are the joint bookrunners.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
There is a $30 million over-allotment option.
When declared, dividends will be paid on the last day of March, June, September and December.
The preferreds become redeemable on Aug. 17, 2022 at par plus accrued dividends. The company can also redeem the issue following a “capital redemption trigger date,” upon a tax event or upon a change in Bermuda law prior to Aug. 17, 2022.
In the last instance, the redemption price is $26.00 a share, plus accrued dividends.
The new securities will be listed on the Nasdaq Global Select Market under the ticker symbol “ACGLO.”
The Hamilton, Bermuda-based insurance company plans to use the proceeds to redeem its 6.75% series C noncumulative preferreds (NYSE: ARHPrC).
| Issuer: | Arch Capital Group Ltd.
|
| Securities: | Series F noncumulative preferred stock
|
| Amount: | $200 million, or 8 million shares
|
| Greenshoe: | $30 million, or 1.2 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and J.P. Morgan Securities LLC
|
| Dividend: | 5.45%
|
| Price: | Par of $25.00
|
| Yield: | 5.45%
|
| Talk: | Initially 5.5%, then revised to 5.45%
|
| Call options: | On or after Aug. 17, 2022, upon a tax event or a “capital redemption trigger date” at par plus accrued dividends; or upon a change in Bermuda law prior to Aug. 17, 2022 at $26.00 a share plus accrued dividends
|
| Pricing date: | Aug. 14
|
| Settlement date: | Aug. 17
|
| Expected rating: | S&P: BBB
|
| Fitch: BBB
|
| Expected listing: | Nasdaq: ACGLO
|
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