W.R. Berkley talks $100 million offering of $25-par subordinated debentures at 5.75% area

By Abigail W. Adams

Portland, Me., March 19 – W.R. Berkley Corp. plans to price $100 million in $25-par subordinated debentures due 2058 after the market close on Monday with price talk for a coupon in the 5.75% area, according to a market source.

Morgan Stanley & Co. Inc., BofA Merrill Lynch, UBS Securities LLC, and Wells Fargo Securities, LLC are bookrunners for the offering, which carries a greenshoe.

The coupon will be paid quarterly. There is an optional deferral period for up to five consecutive years. During the optional deferral period interest will accrue and will be compounded quarterly.

The notes are freely callable on or after March 30, 2023. If the notes are not redeemed in whole, at least $25 million principal amount must remain outstanding after the redemption, according to a 424B5 filing with the Securities and Exchange Commission.

The notes may be redeemed in whole but not in part prior to March 30, 2023 upon a tax event at par plus accrued interest.

The notes may also be redeemed in whole but not in part upon a rating agency event at 102% of the principal amount plus accrued interest.

The notes will be listed for trade on the New York Stock Exchange under the ticker “WRBPrE.”

Proceeds will be used for general corporate purposes.

W.R. Berkley is a Greenwich, Conn.-based insurance holding company.

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