New Issue: OneBeacon U.S. Holdings prices $275 million 4.6% 10-year notes at 287.5 bps spread

By Andrea Heisinger

New York, Nov. 6 - OneBeacon U.S. Holdings, Inc. priced $275 million of 4.6% 10-year senior notes on Tuesday to yield Treasuries plus 287.5 basis points, according to a filing with the Securities and Exchange Commission.

The notes (Baa2/BBB-/) were sold at 99.881 to yield 4.615%. There is a make-whole call at Treasuries plus 45 bps.

The notes are guaranteed by OneBeacon Insurance Group Ltd.

Bookrunners were Barclays, Bank of America Merrill Lynch and HSBC Securities (USA) Inc.

Proceeds will be used, along with cash on hand, to redeem $269.9 million of 5.875% notes due 2013.

The property and casualty insurance holding company is based in Bermuda.

Issuer:	OneBeacon U.S. Holdings, Inc.
Guarantor:	OneBeacon Insurance Group Ltd.
Issue:	Senior notes
Amount:	$275 million
Maturity:	Nov. 9, 2022
Bookrunners:	Barclays, Bank of America Merrill Lynch, HSBC Securities (USA) Inc.
Co-managers:	U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, Commerzbank Capital Markets Corp., Lloyds Securities Inc., RBS Securities Inc.
Coupon:	4.6%
Price:	99.881
Yield:	4.615%
Spread:	Treasuries plus 287.5 bps
Call:	Make-whole at Treasuries plus 45 bps
Trade date:	Nov. 6
Settlement date:	Nov. 9
Ratings:	Moody's: Baa2
	Standard & Poor's: BBB-

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