Quanta buys back $68 million of 10¼% series A preferreds in tender

By Susanna Moon

Chicago, Aug. 13 - Quanta Capital Holdings Ltd. said investors tendered $68 million of 10¼% series A perpetual preferred shares through subsidiary QCH Acquisition Ltd.

The offer expired at midnight ET on Aug. 10. The offer began on July 12.

Investors tendered a total of 3,024,891 preferred shares as of the tender deadline, representing more than 96% of the issued preferred shares. The company offered to buy the shares at $22.50 per share.

The company also received the required consents to amend the certificate of designation to remove a provision that would permit holders of preferred shares to elect two members to the company's board under certain circumstances. At a shareholders meeting on Aug. 10, a majority voted to approve the amendment.

The company issued a total of $78.26 million of the securities after the underwriter purchased an additional 130,525 shares at the offering price of $25.00 per share. Quanta Capital originally sold $75 million of the preferred shares on Dec. 15, 2005.

The company announced the tender offer price at $21.50, which was a 22% premium to the $17.57 closing price on June 1, the last trading day before the announcement of the tender offer.

At the time of the announcement, the repurchase price represented a 7.5% increase from the $20 per share announced June 4 in filings with the Securities and Exchange Commission.

The company said in a previous announcement that it would fund the offer with cash on hand.

The offer was conditioned upon the proposed amendment being approved as well as the tender of an undetermined number of a majority of the preferred shares.

Friedman Billings Ramsey & Co., Inc. is the dealer manager and co-solicitation agent (703 875-1499). Georgeson, Inc. is the information agent (888 605-7527).

Quanta is a Hamilton, Bermuda-based provider of property and casualty insurance, reinsurance, risk assessment and risk consulting services.

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