Oil Casualty Insurance seeks consents to amend 8% subordinated notes

By Wendy Van Sickle

Columbus, Ohio, Sept. 22 – Oil Casualty Insurance, Ltd. announced a solicitation of consents for its 8% deferrable subordinated notes due Sept. 15, 2034.

According to a press release from the company, Oil Casualty’s proposed amendments would:

• Allow the company to implement a strategic plan with the goal of diversifying its policy issuance into adjacent industries and non-energy customers;

• Permit Oil Casualty to terminate its existing shareholders’ agreement, most of the provisions of which would be incorporated into the company’s bylaws; and

• Add an interest rate adjustment period tied to the rating assigned to the notes, during the continuation of which the notes would bear interest at 8½%.

Holders who deliver consents will receive a fee of $3.75 per $1,000 principal amount.

Consents must be delivered by 5 p.m. ET on Sept. 29.

Oil Casualty needs approval from the holders of a majority of the notes to make the changes. Consent fees will only be paid if the solicitation is successful.

Barclays Capital Inc. is solicitation agent (800 438-3242 or 212 528-7581). The information agent is MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500).

Oil Casualty is a provider of excess property and liability insurance to energy companies with headquarters in Bermuda.

© 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.