OneBeacon subsidiary buys back $150 million 5.875% notes through oversubscribed tender offer

By Angela McDaniels

Tacoma, Wash., April 21 - OneBeacon Insurance Group, Ltd. subsidiary OneBeacon U.S. Holdings, Inc. received tenders for $232,967,000 of its 5.875% senior notes due 2013, according to a company news release.

The company offered to purchase $150 million of the notes. Because the offer was oversubscribed, the notes were accepted on a pro rata basis. The proration factor was about 64%.

The tender offer began March 24 and ended at 11:59 p.m. ET on April 20.

The company paid $1,075 for each $1,000 principal amount of notes plus accrued interest. This amount includes a $30 early tender payment for each note tendered by the early tender deadline, 5 p.m. ET on April 6.

Following the offer, $269,864,000 principal amount of notes remains outstanding. This does not include the $49,318,000 held by one of the company's subsidiaries.

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

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

OneBeacon, formerly known as Fund American Cos., Inc., is an insurance holding company based in Hamilton, Bermuda.

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