Selective calls half of its outstanding 1.6155% convertibles

By Susanna Moon

Chicago, Oct. 26 - Selective Insurance Group, Inc. said it would redeem half of its outstanding 1.6155% senior convertible notes due 2032.

The company said it would pay $384.74 per $1,000 of the notes, including a $4.62 call premium, plus accrued interest up to the redemption date of Nov. 30.

The notes are convertible into company shares at a par value of $2.00 per share at any time before the close of business on Nov. 28 at a conversion rate of 25.9566 shares per note. The conversion price is $14.645 per share.

The bonds were issued on Sept. 24, 2002. Selective sold $100 million of the 30-year discount convertible notes at 38.01 for a yield to maturity of 4.25% and with a 30% initial conversion premium.

The issue has a cash coupon of 1.6155% for the first seven years with no accretion, then reverts to a traditional zero-coupon issue accreting to par at maturity.

Selective is a holding company based in Branchville, N.J., for five property and casualty insurance companies that offer primary and alternative market insurance for commercial and personal risks.

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