By Stephanie N. Rotondo
Seattle, June 12 – Validus Holdings Ltd. priced an upsized $250 million offering of 5.8% series B noncumulative preference shares (expected ratings: Baa3/BBB-/BBB) on Monday, a market source reported.
The deal came tight to the initial price talk of 5.875% and was increased from an expected $150 million.
BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners.
The preference shares will be issued as depositary shares representing a 1/1,000th interest.
Dividends will be payable on a quarterly basis, when declared.
The preference shares become redeemable on June 21, 2022. However, the company can redeem earlier if it meets the sufficient funds requirement set by the Bermuda Monetary Authority and the agency approves an early redemption or if the company replaces the shares with something having a better capital treatment.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “VRPrB.”
Proceeds will be used for general corporate purposes.
Validus is a Pembroke, Bermuda-based reinsurance company.
| Issuer: | Validus Holdings Ltd.
|
| Securities: | Series B noncumulative preference shares
|
| Amount: | $250 million, or 10 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch and Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Dowling & Partners Securities LLC, HSBC Securities (USA) Inc., JMP Securities LLC, J.P. Morgan Securities LLC and Lloyds Securities Inc.
|
| Dividend: | 5.8%
|
| Price: | Par of $25.00
|
| Yield: | 5.8%
|
| Price talk: | 5.875%
|
| Call options: | On or after June 21, 2022 at par plus accrued interest; the company can redeem earlier if it meets the sufficient funds requirement set by the Bermuda Monetary Authority and the agency approves an early redemption or if the company replaces the shares with something having a better capital treatment
|
| Pricing date: | June 12
|
| Settlement date: | June 20
|
| Expected ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Expected listing: | NYSE: VRPrB
|
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