By Stephanie N. Rotondo
Phoenix, April 25 - W.R. Berkley Corp. priced $350 million 5.625% $25-par 40-year subordinated debentures (expected ratings: Baa3/BBB-/BBB-) on Thursday, according to a market source.
BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.
The company can redeem the notes, in whole or in part, on or after April 30, 2018 at par plus accrued interest. The notes can be called prior to that date within 90 days of a tax or rating agency event.
In the case of the rating agency event, the call price would be par plus a make-whole premium.
Proceeds will be used to repay all or part of the$250 million of 6.75% subordinated debentures due 2045 currently held by W.R. Berkley Capital Trust II and for general corporate purposes. W.R. Capital Trust II would then use the funds to call all or part of its 6.75% trust originated preferred securities.
W.R. Berkley is a Greenwich, Conn.-based insurance holding company.
| Issuer: | W.R. Berkley Corp.
|
| Securities: | Subordinated debentures
|
| Amount: | $350 million
|
| Maturity: | April 30, 2053
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Coupon: | 5.625%
|
| Price: | Par of $25
|
| Yield: | 5.625%
|
| Talk: | Around 5.75%
|
| Call options: | On or after April 30, 2018 or within 90 days of a tax event at par plus accrued interest; within 90 days of a rating agency event at par plus a make-whole premium
|
| Pricing date: | April 25
|
| Settlement date: | May 2
|
| Expected ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
| Expected listing: | NYSE: WRBPB
|
| Cusip: | 084423409
|
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