By Stephanie N. Rotondo
Portland, Ore., Jan. 20 - Maiden Holdings Ltd., along with its subsidiary Maiden Holdings North America Ltd., announced Tuesday that it issued $260 million of 14% trust preferred securities due January 2039 through a private placement.
The trust preferreds were sold by an affiliated trust, according to a press release, with Maiden Holdings selling subordinated debentures to the trust.
The new issue is redeemable at par plus one year's interest until January 2014. After that date, the bonds are redeemable at par.
Along with the issuance of the notes, the company also issued 11.7 million shares of common stock to investors, which included Maiden's founding shareholders and other institutional investors.
Friedman, Billings, Ramsey & Co. acted as placement agent.
Proceeds from the transaction will be used for working capital purposes, as well as to support the company's recently acquired GMAC Re business.
"The successful completion of the trust preferred financing positions the expanded Maiden Holdings platform to continue to service its existing business and for growth," said Art Raschbaum, chief executive officer of Maiden, in the statement.
"We are very appreciative of the commitment of our investors. We believe that this solution is superior to a rights offering in the current environment and is in the best interest of our shareholders."
Maiden Holdings is a Hamilton, Bermuda-based company offering customized reinsurance products and services to regional and specialty insurance companies in the U.S. and Europe.
| Issuer: | Maiden Holdings Ltd.
|
| Security description: | Trust preferred securities
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| Amount: | $260 million
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| Coupon: | 14%
|
| Maturity: | January 20, 2039
|
| Call options: | Par plus one year interest until January 2014; par after that
|
| Shares: | 11.7 million
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| Distribution: | Private placement
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| Placement agent: | Friedman, Billings, Ramsey & Co.
|
| Settlement date: | Jan. 20
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