Maiden Holdings $100M Public Offering
Bermuda-based Maiden Holdings, Ltd. yesterday [Mar.20] announced that its wholly-owned US holding company, Maiden Holdings North America, Ltd., has priced the offering of $100 million aggregate principal amount of 8% Senior Notes due March 27, 2042, which are fully and unconditionally guaranteed by Maiden.
The Notes are redeemable for cash, in whole or in part, on or after March 27, 2017, at 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to but excluding the redemption date.
Maiden NA intends to apply to list the Notes on the New York Stock Exchange and expects trading in the Notes to begin within 30 days after issuance.
The offering is expected to close on March 27, 2012, subject to customary closing conditions. Maiden NA has granted the underwriters a 30-day option to purchase up to an additional $15 million aggregate principal amount of Notes to cover over-allotments, if any.
The net proceeds from this offering will be used for general corporate purposes, which may include repurchasing the company’s outstanding 14% 30-year trust preferred securities [TRUPS] issued in January 2009 or for working capital.
The company presently has no intention to repurchase a portion of the TRUPS with these proceeds prior to January 20, 2014, and expects to invest such net proceeds in marketable fixed income securities and short term investments.
The Notes are being offered under the company’s effective shelf registration statement previously filed with the US Securities and Exchange Commission.
Maiden Holdings, Ltd. is a Bermuda-based holding company formed in 2007.
Through its subsidiaries, which are each A- rated (excellent) by A.M. Best, the company is focused on providing non-catastrophic, customized reinsurance products and services to small and mid-size insurance companies in the United States and Europe.
As of December 31, 2011, Maiden had $3.4 billion in assets and shareholders’ equity of $768.6 million.
