By Sheri Kasprzak
New York, Nov. 17 - Tower Group, Inc. concluded a $40 million private placement of series A non-cumulative convertible perpetual preferred stock.
The company sold 40,000 shares of the preferreds at $1,000 each to CastlePoint Reinsurance Co., Ltd.
The preferreds pay annual dividends at 8.66%. The preferreds become automatically convertible into common shares once the company completes its first underwritten public offering. Of the preferreds, 30,000 will then automatically convert into common shares equal to the liquidation preference divided by the offering price of the public offering. The remaining 10,000 may be converted at the holders' option.
The offering was conducted as part of Tower's acquisition of Preserver Group, Inc.
Based in New York, Tower Group is a property and casualty insurance company.
| Issuer: | Tower Group, Inc.
|
| Issue: | Series A non-cumulative convertible perpetual preferred stock
|
| Amount: | $40 million
|
| Shares: | 40,000
|
| Price: | $1,000
|
| Dividends: | 8.66%
|
| Conversion price: | Upon completion of public offering, conversion price will equal liquidation preference divided by public offering price
|
| Warrants: | No
|
| Investor: | CastlePoint Reinsurance Co., Ltd.
|
| Settlement date: | Nov. 13
|
| Stock symbol: | Nasdaq: TWGP
|
| Stock price: | $31.55 at close Nov. 13
|
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