Alleghany plans to sell $400 million 30-year senior notes; price talk 160 bps over Treasuries area

By Cristal Cody

Chicago, Aug. 10 – Alleghany Corp. is planning to sell a single tranche of $400 million of fixed-rate notes with a 30-year tenor, according to a 424B5 filing with the Securities and Exchange Commission.

The spread is being talked in the Treasuries plus 160 basis points area, a market source reported.

The notes due Aug. 15, 2051 have a make-whole call and a par call.

BMO Capital Markets Corp., Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are joint bookrunners.

Bank of New York Mellon is the trustee.

Olshan Frome Wolosky LLP is advising Alleghany.

Proceeds will be used for general corporate purposes, which may include the repayment at maturity of the company’s 4.95% senior notes due 2022.

Alleghany is a New York-based investment holding company, with a core position in property and casualty reinsurance and insurance.

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