By Cristal Cody
Tupelo, Miss., June 23 – Arch Capital Group Ltd. priced $1 billion of 3.635% 30-year senior notes (Baa1/A-/BBB+) on Tuesday at par to yield a spread of Treasuries plus 215 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Initial price talk was in the 250 bps spread area.
Wells Fargo Securities LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Lloyds Securities Inc. were the bookrunners.
The company dropped a 10-year tranche from the final offering.
Fixed income investor calls were held for the deal on Monday.
Proceeds will be used for general corporate purposes.
Arch is a Pembroke, Bermuda-based provider of insurance and reinsurance.
| Issuer: | Arch Capital Group Ltd.
|
| Amount: | $1 billion
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| Maturity: | June 30, 2050
|
| Description: | Senior notes
|
| Bookrunners: | Wells Fargo Securities LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Lloyds Securities Inc.
|
| Co-managers: | Barclays, BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, HSBC Securities (USA) Inc., RBC Capital Markets, LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 3.635%
|
| Price: | Par
|
| Yield: | 3.635%
|
| Spread: | Treasuries plus 215 bps
|
| Call features: | Make-whole call before Dec. 30, 2049 at Treasuries plus 35 bps; thereafter at par
|
| Trade date: | June 23
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| Settlement date: | June 30
|
| Ratings: | Moody’s: Baa1
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| S&P: A-
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
| Price guidance: | Treasuries plus 250 bps area
|
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