Enstar to sell fixed-rate reset 20-year junior subordinated notes

By James McCandless

San Antonio, Aug. 17 – Enstar Group Ltd. plans to price an offering of $1,000-par fixed-rate reset junior subordinated notes due 2040, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be issued by Enstar Finance LLC and will be guaranteed b y Enstar Group on a junior subordinated basis.

Wells Fargo Securities, LLC, Barclays, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, ING Financial Markets LLC, nabSecurities, LLC, Scotia Capital (USA) Inc. and Truist Securities, Inc. are the bookrunners.

Coupons are payable on March 1 and Sept. 1, starting on Sept. 1, 2021.

The coupon resets on Sept. 1, 2025 and every five years thereafter at the Treasury rate plus a spread.

The notes are redeemable within six months of each reset date at par. The notes are also redeemable after a change in law at par, a tax event at par, or after a rating agency event at 102%.

Enstar plans to use the proceeds for general corporate purposes, including, but not limited to, repayment of borrowings, funding for acquisitions, working capital and other business opportunities.

The company does not plan to list the notes on any securities exchange.

Enstar is a Bermuda-based insurance provider.

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