By Stephanie N. Rotondo
Seattle, Feb. 23 – W.R. Berkley Corp. sold $100 million of 5.9% $25-par subordinated debentures due March 1, 2056 (expected ratings: Baa3/BBB-/BBB-) on Tuesday, according to a market source.
The deal came in line with the 5.9% price talk but was downsized from an expected $150 million.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC ran the books.
Interest will be payable on a quarterly basis. The company has the right to defer the payments for up to five consecutive years, during which time the interest is compounded quarterly.
The securities become redeemable in whole or in part on or after March 1, 2021 at par plus accrued interest. If the issue is not redeemed in whole, $25 million must remain outstanding.
Additionally, the company can redeem the notes prior to 2021 within 90 days of a tax or rating agency event. Upon a tax event, the redemption price will be par plus accrued interest, while in the case of a rating agency event, holders will receive the greater of the notes’ principal amount or a make-whole amount.
Proceeds will be used for general corporate purposes.
W.R. Berkley is a Greenwich, Conn.-based insurance holding company.
| Issuer: | W.R. Berkley Corp.
|
| Securities: | Subordinated debentures
|
| Amount: | $100 million
|
| Maturity: | March 1, 2056
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Coupon: | 5.9%
|
| Price: | Par of $25
|
| Yield: | 5.9%
|
| Talk: | 5.9% area
|
| Call options: | On or after March 1, 2021 at par plus accrued interest; within 90 days of a rating agency event at the greater of the principal amount or a make-whole amount plus accrued interest; or within 90 days of a tax event at par plus accrued interest
|
| Pricing date: | Feb. 23
|
| Settlement date: | March 1
|
| Expected ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB-
|
| Expected listing: | NYSE: WRBPC
|
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