By Rebecca Melvin
New York, Dec. 16 - AmTrust Financial Services Inc. priced $175 million of 10-year convertible senior notes at par to yield 5.5% with an initial conversion premium of 25%, according to a syndicate source.
The Rule 144A offering, which has a $25 million greenshoe, was sold via bookrunners Goldman Sachs & Co. and J.P. Morgan Securities LLC. The deal is expected to close Dec. 21.
There is a change-of-control put at par plus interest.
Proceeds will be used for general corporate purposes, which may include working capital, repayment of debt, capital expenditures and/or strategic acquisitions.
AmTrust is a New York-based multinational specialty property and casualty insurance company.
| Issuer: | AmTrust Financial Services Inc.
|
| Issue: | Convertible senior notes
|
| Amount: | $175 million
|
| Greenshoe: | $25 million
|
| Maturity: | Dec. 15, 2021
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Coupon: | 5.5%
|
| Price: | Par
|
| Yield: | 5.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $31.83
|
| Conversion ratio: | 31.4218
|
| Net share settlement: | Yes
|
| Pricing date: | Dec. 15, post close
|
| Settlement date: | Dec. 21
|
| Stock symbol: | Nasdaq: AFSI
|
| Stock price: | $25.46 on Dec. 15
|
| Market capitalization: | $1.39 billion
|
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