Tower Group files 10-Q a week late, curing event of default for 5% convertibles due 2014

By Toni Weeks

San Luis Obispo, Calif., Nov. 26 - Tower Group International, Ltd. said it filed its Form 10-Q for the second quarter of 2013 on Nov. 26, curing the event of default that was triggered on Nov. 19 when the company failed to file the 10-Q related to its 5% convertible senior notes due 2014, according to an 8-K filing with the Securities and Exchange Commission.

The company, a guarantor under the indenture dated Sept. 20, 2010 between subsidiary Tower Group, Inc. and U.S. Bank NA, the trustee for the notes, announced on Monday it was unable to provide a copy of its Form 10-Q in the time period prescribed in the indenture.

As a result of the late filing, the company was obligated to pay additional interest to the holders of the notes at an annualized rate of 0.25% of the principal amount for the period from Nov. 19 to Nov. 26. The event of default did not result in a material increase in its obligations under the indenture, the company said in the filing.

Tower Group is a New York-based provider of commercial, personal and specialty property and casualty insurance products and services.

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