XL Group announces tenders for $550 million XLIT, Catlin securities

By Wendy Van Sickle

Columbus, Ohio, June 7 – XL Group plc wholly owned subsidiary XLIT Ltd. tendered for up to $550 million of four sets of securities of XLIT and Catlin Insurance Co. Ltd., according to a press release.

The securities, listed in acceptance priority order, and the offer price per $1,000 principal amount are as follow:

• $350 million of series D preference ordinary shares of XLIT, $935;

• $1 billion of series E preference ordinary shares of XLIT, $930;

• $600 million of non-cumulative preference preferred shares of Catlin, $965;

• $500 million of 5.5% subordinated notes due 2045 of XLIT, at an offer price to be set at 2 p.m. ET on June 21 using the 3% U.S. Treasury note due Feb. 15, 2047 plus 220 basis points.

There is a tender cap of $100 million for the 5.5% subordinated notes.

For the 5.5% subordinated notes, the offer price will include a $50 early tender premium for each $1,000 of notes tendered by 5 p.m. ET on June 20.

Holders who tender that date will receive the offer price less the $50 early tender premium.

The issuers will also pay accrued interest or dividends to the settlement date.

The offers expire at 5 p.m. ET on July 6.

If the overall tender cap or the series cap for the 5.5% notes is exceeded, securities may be accepted on a pro rata basis.

Tenders of 5.5% notes may be withdrawn until 5 p.m. ET on June 20. Other securities tendered under the offers may be withdrawn at any time prior to the expiration of the offers.

The offers are subject to a minimum tender condition specifying that securities must be tendered that would result in a total purchase price of at least $100 million. The offers are also subject to completion of a fixed-rate debt financing transaction resulting in proceeds of at least $500 million.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) are dealer managers for all the offers. J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) is a dealer manager for the series E offer, the Catlin offer and the 5.5% notes offer.

Global Bondholder Services Corp. (866 470-4500 or 212 430-3774) is the tender and information agent.

XL Group is a Dublin-based financial services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.