By Andrea Heisinger
New York, Nov. 9 - Allied World Assurance Co. Holdings, Ltd. sold $300 million 5.5% 10-year senior notes on Tuesday to yield Treasuries plus 290 basis points, a source who worked on the sale said.
Whispered price talk was in the low 300 bps, the source said. That was later revised to the 300 bps area, and the notes priced at the tight end of that talk.
The notes (Baa1/BBB/) priced at 99.544 to yield 5.56%. They are callable at a make-whole of 50 bps over Treasuries.
Bank of America Merrill Lynch and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including the repurchase of common stock, to pay dividends to shareholders or for potential acquisitions.
The insurance and reinsurance company is based in Bermuda.
| Issuer: | Allied World Assurance Co. Holdings, Ltd.
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2020
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities LLC
|
| Coupon: | 5.5%
|
| Price: | 99.544
|
| Yield: | 5.56%
|
| Spread: | Treasuries plus 290 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB
|
| Price talk: | Low 300 bps (whispered), 300 bps area (revised)
|
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