By Cristal Cody
Eureka Springs, Ark., Nov. 29 – Arch Capital Group Ltd. priced $950 million of fixed-rate notes (A3/A-/A) in two tranches on Tuesday, according to a company news release.
The company sold $500 million of 4.011% 10-year notes with a spread of 170 basis points over Treasuries.
Arch Capital priced $450 million of 5.031% 30-year notes at 205 bps over Treasuries.
The notes priced on the tight side of guidance.
Credit Suisse Securities (USA) LLC, Barclays, J.P. Morgan Securities LLC, Lloyds Securities Inc., BofA Merrill Lynch, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and BMO Capital Markets Corp. were the bookrunners.
The notes were issued through Arch Capital Finance LLC and are guaranteed by parent company Arch Capital Group.
The bonds have a make-whole call feature and then are callable at par, according to a 424B5 filed with the Securities and Exchange Commission.
The Hamilton, Bermuda-based reinsurance company will use the proceeds for the company’s planned acquisition of United Guaranty Corp. and AIG United Guaranty (Asia) Ltd. and for anticipated growth in its mortgage and other businesses.
| Issuer: | Arch Capital Finance LLC
|
| Guarantor: | Arch Capital Group Ltd.
|
| Amount: | $950 million
|
| Description: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Barclays, J.P. Morgan Securities LLC, Lloyds Securities Inc., BofA Merrill Lynch, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC, BMO Capital Markets Corp.
|
| Trade date: | Nov. 29
|
| Settlement date: | Dec. 8
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2026
|
| Coupon: | 4.011%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 175 bps area, plus or minus 5 bps
|
|
|
| 30-year notes
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| Amount: | $450 million
|
| Maturity: | Dec. 15, 2046
|
| Coupon: | 5.031%
|
| Spread: | Treasuries plus 205 bps
|
| Price guidance: | Treasuries plus 210 bps area, plus or minus 5 bps
|
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