By Ronda Fears
Nashville, Tenn., June 13 - Odyssey Re Holdings Corp. sold $100 million of 20-year convertible senior notes in the Rule 144A market at par to yield 4.375% with a 35% initial conversion premium, via lead manager Banc of America Securities.
The issue sold in the mid-range of price talk that put the coupon between 4.0% and 4.5%, and at the aggressive end of premium guidance for 30% to 35%.
Settlement on conversion or redemption can be made, at the option of Odyssey Re, in cash, stock or a combination of the two.
New York-based Odyssey Re, the holding company for reinsurance-related subsidiaries of Fairfax Financial Holdings Ltd., intends to use proceeds to repay existing debt.
Terms of the new deal are:
| Issuer: | Odyssey Re Holdings Corp.
|
| Amount: | $100 million
|
| Greenshoe: | $10 million
|
| Lead Manager: | | Banc of America Securties
|
| Maturity Date: | June 15, 2022
|
| Coupon: | 4.375%
|
| Issue Price: | par
|
| Yield: | 4.375%
|
| Conversion Premium: | 35%
|
| Conversion Price: | $21.28
|
| Conversion Ratio: | 46.9925
|
| Call: | non-callable for three years
|
| Put: | in years three, five, seven, 10 and 15
|
| Contingent conversion: | 120%
|
| Contingent payment: | 120%
|
| Settlement Date: | June 17
|
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