By Aleesia Forni
Virginia Beach, Dec. 10 - Arch Capital Group (U.S.) Inc. priced an upsized $500 million issue of 5.144% senior notes (A3/A-/A-) due Nov. 1, 2043 with a spread of Treasuries plus 130 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Pricing was at par to yield 5.144%.
The notes sold at the tight end of talk and are fully and unconditionally guaranteed by Arch Capital Group Ltd.
BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Proceeds will be used to fund the acquisition of certain assets of PMI Mortgage Insurance Co., as well as shares of the company's common stock.
Arch Capital Group is a Hamilton, Bermuda-based reinsurance company.
| Issuer: | Arch Capital Group (U.S.) Inc.
|
| Guarantor: | Arch Capital Group Ltd.
|
| Amount: | $500 million, upsized from $400 million
|
| Description: | Senior notes
|
| Maturity: | Nov. 1, 2043
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | Lloyds Securities LLC
|
| Co-managers: | Barclays, BNY Mellon Capital Markets LLC, Citigroup Global Markets Inc., ING Financial Markets LLC, U.S. Bancorp Investments, | Inc.
|
| Coupon: | 5.144%
|
| Price: | Par
|
| Yield: | 5.144%
|
| Spread: | Treasuries plus 130 bps
|
| Trade date: | Dec. 10
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| Settlement date: | Dec. 13
|
| Ratings: | Moody's: A3
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| Standard & Poor's: A-
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| Fitch: A-
|
| Make-whole call: | Treasuries plus 20 bps
|
| Price talk: | Treasuries plus 130 bps to 135 bps
|
| Distribution: | SEC-registered
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