Platinum wraps mandatory convertibles sale with greenshoe, completes stock sale

By Jennifer Chiou

New York, Dec. 6 - Platinum Underwriters Holdings, Ltd. said it sold 5.75 million shares of 6% series A mandatory convertible preferreds due Feb. 9, 2009 at $30.15 apiece for gross proceeds of $173.3625 million, including a fully exercised $22.5 million greenshoe.

The Bermuda-based reinsurance company also announced the completion of its $252 million public offering of 8,368,263 shares, also at $30.15 per share. The company sold 4,408,263 shares for gross proceeds of about $132.91 million. The company did not receive proceeds from the 3.96 million shares RenaissanceRe Holdings Ltd. sold.

Platinum Underwriters priced $150.75 million of the mandatories on Nov. 30, after the close, to yield 6% with an initial conversion premium of 27%. They trade under the symbol "PTP PrA" on the New York Stock Exchange.

Under the Prides Plus payout structure, the mandatories will be convertible at 0.7874 if the conversion price is above $38.29.

The company is using proceeds from both offerings to make contributions to the capital and surplus of its reinsurance operating subsidiaries and for general corporate purposes.

Merrill Lynch & Co. was bookrunner for the mandatories, and Goldman, Sachs & Co. was co-manager.

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