Progressive launches series B fixed-to-floating rate cumulative perpetual preferreds

By Abigail W. Adams

Portland, Me., March 9 – Progressive Corp. launched an offering of $1,000-par perpetual series B fixed-to-floating rate cumulative preferred shares prior to the market open on Friday, according to a FWP filing with the Securities and Exchange Commission.

Credit Suisse and Goldman Sachs & Co. LLC are joint bookrunners for the offering.

The preferred shares will have a fixed dividend until a specified date in March 2023 when they will switch to a floating rate of Libor plus a to-be-determined spread.

Before March 2023, the preferreds will only be redeemable on a change in the equity credit attributed to the securities by a rating agency. In that case the redemption price will be 102% of par.

Starting March 2023, the preferreds will be freely callable at par.

The preferred shares will not be listed on any securities exchanges.

Proceeds will be used for general corporate purposes.

Progressive is a Mayfield Village, Ohio-based insurance holding company.

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