By Stephanie N. Rotondo
Seattle, June 6 – Validus Holdings Ltd. priced $150 million of 5.875% series A noncumulative preference stock (Ba1/BBB-/BBB) at par of $25.00 on Monday, according to a market source.
The preference shares will be issued as depositary shares representing a 1/1,000th interest.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC are the joint bookrunning managers.
When declared, dividends will be paid on a quarterly basis. The preference shares become redeemable on or after June 25, 2021 at par plus accrued dividends.
The company also has the option to redeem the issue in full upon a change of control or a tax event.
Proceeds will be used for general corporate purposes.
Validus is a Bermuda-based reinsurance and insurance company.
| Issuer: | Validus Holdings Ltd.
|
| Securities: | Series A noncumulative preference shares
|
| Amount: | $150 million, or 6 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC
|
| Dividend: | 5.875%
|
| Price: | Par of $25.00
|
| Yield: | 5.875%
|
| Talk: | 6% to 6.125%
|
| Call options: | On or after June 25, 2021 or upon a change of control or tax event at par plus accrued dividends
|
| Pricing date: | June 6
|
| Settlement date: | June 13
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB
|
| Expected listing: | NYSE: VRPPA
|
| Cusip: | 91915W201
|
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