OneBeacon tender for 5.875% notes oversubscribed at early deadline

By Susanna Moon

Chicago, April 7 - OneBeacon Insurance Group, Ltd. said that investors tendered $232,783,000 principal amount of the 5.875% senior notes due 2013 issued by its indirect wholly owned subsidiary OneBeacon U.S. Holdings, Inc. by the early tender deadline at 5 p.m. ET on April 6.

The company said that holders tendered more than the $150 million cap, adding that it will purchase notes on a prorated basis.

Funding for the offer will come from cash on hand or from the sale of investments, according to a company press release.

The offer for the company's $469,182,000 outstanding notes will continue until 11:59 p.m. ET on April 20. It began on March 24.

Holders who tender by the early date will receive $1,075 for each $1,000 principal amount of notes, which includes a $30.00 early tender payment.

Of the total amount outstanding, one of the company's subsidiaries holds $49,318,000 of the notes and will not participate in the offer.

The withdrawal deadline coincided with the early deadline, and tendered notes may no longer be withdrawn.

There is no minimum tender condition.

Barclays Capital Inc. (800 438-3242 or call collect 212 528-7581) is the lead dealer manager, and Merrill Lynch, Deutsche Bank Securities Inc. and HSBC Securities (USA) Inc. are the co-dealer managers. Bondholder Communications Group, LLC (888 385-2663 or 809-2663, attn: Olivia Banks) is the tender agent and information agent.

OneBeacon, formerly known as Fund American Cos., Inc., is a Bermuda-domiciled holding company.

The notes are guaranteed by White Mountains Insurance Group, Ltd.

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