By Cristal Cody
Tupelo, Miss., Dec. 3 – AXIS Specialty Finance LLC priced $425 million of reset junior subordinated notes due Jan. 15, 2040 (Baa2/BBB) at par to yield 4.9% on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the 5.125% area.
The rate on the notes will reset Jan. 15, 2030 and every five years to a rate of Treasuries plus 318.6 basis points.
Wells Fargo Securities LLC and Citigroup Global Markets Inc. were the bookrunners.
AXIS held a roadshow for the offering on Monday.
The notes are fully and unconditionally guaranteed by parent company AXIS Capital Holdings Ltd.
Proceeds will be used for repayment or redemption of the company’s 5.875% senior notes due 2020 and the redemption of all of its 5.5% series D preferred shares.
AXIS is a Pembroke, Bermuda-based insurance and reinsurance company with U.S. operations based in Alpharetta, Ga.
| Issuer: | AXIS Specialty Finance LLC
|
| Guarantor: | AXIS Capital Holdings Ltd.
|
| Amount: | $425 million
|
| Description: | Fixed-rate reset junior subordinated notes
|
| Maturity: | Jan. 15, 2040
|
| Bookrunners: | Wells Fargo Securities LLC and Citigroup Global Markets Inc.
|
| Senior co-manager: | HSBC Securities (USA) Inc.
|
| Junior co-managers: | Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC and ING Financial Markets LLC
|
| Coupon: | 4.9%; resets Jan. 15, 2030 and every five years to Treasuries plus 318.6 bps
|
| Price: | Par
|
| Yield: | 4.9%
|
| Call features: | Make-whole call before Jan. 15, 2030 at price equal to greater of par and Treasuries plus 50 bps; thereafter at par
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
| Price guidance: | 5.125% area
|
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