By Ronda Fears
Nashville, Tenn., Nov. 16 - PartnerRe Ltd. sold $175 million of three-year mandatory convertible preferreds using the premium exchangeable participating securities, or PEPS, structure at par of 50 to yield 8.0% with a 23.4% initial conversion premium. Morgan Stanley was lead manager of the registered deal, which sold at the aggressive end of price talk that put the yield between 8.0% and 8.5%. The premium was more aggressive than guidance that called for a range of 18% to 22% initial conversion premium. The deal was upsized from $150 million.
The Bermuda-based reinsurance firm also sold $200 million of straight trust preferreds. The company said it plans to use proceeds for general corporate purposes.
Terms of the new deal are:
Issuer: PartnerRe Ltd.
Amount: $175 million
Greenshoe: $26.25 million
Lead Manager: Morgan Stanley
Maturity Date: Dec. 31, 2004
Dividend: 8.0%
Issue Price: par, $50
Yield-to-maturity: 8.0%
Conversion Premium: 23.4%
Conversion Price: $47.00/$57.50
Conversion Ratio: 0.8696/1.0638
Call: non-callable
Expected Rating(s): Moody's: Baa1
| S&P: A-
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| Settlement Date: | Nov. 21
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