Fortis $775 million mandatory exchangeable, convertible into Assurant, talked 7.75%-8.25%, up 18%-22%

By Ronda Fears

Nashville, Jan. 20 - Fortis NV was pitching roughly $775 million of three-year mandatory exchangeable bonds, convertible into Assurant Inc. shares, with guidance for a yield of 7.75% to 8.25% and an 18% to 22% initial conversion premium.

The issue was slated to price after Thursday's close via bookrunner Morgan Stanley & Co.

The European banking and financial services concern is essentially disposing of its stake in New York City-based Assurant with the Rule 144A exchangeable bonds, which will convert into roughly 23 million shares of the insurance firm, plus its remaining 27.2 million shares of common stock.

Earlier this month, Fortis estimated the share offering would fetch $822.8 million at $30.25 each.

Assurant shares closed Thursday at $30.60, up 9 cents on the day, or 0.29%. In after-hours trading, the stock was off 7 cents, or 0.23%.

In February 2004, Fortis sold about half its stake in Assurant with an initial public offering that brought it $1.8 billion. At that time, the Belgian-Dutch financial services firm had said it planned to dispose of its remaining stake in Assurant over time.

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