Maiden Closes $100 Million Offering
Bermuda’s Maiden Holdings, Ltd. today [Mar. 27] announced that its wholly-owned US holding company, Maiden Holdings North America, Ltd., has closed its offering of $100 million aggregate principal amount of 8% Senior Notes due March 27, 2042, which are fully and unconditionally guaranteed by Maiden. The offering was priced on March 20, 2012.
Total net proceeds from the offering were approximately $96.6 million, after deducting the underwriting discount and estimated offering expenses payable by Maiden NA and the company.
As previously announced, 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.
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.
A.M. Best has assigned debt ratings of “bbb-” to the $100 million 8.0% senior unsecured notes due March 2042 and to the $107.5 million 8.25% senior unsecured notes due June 2041 [issued in June 2011] of Maiden NA. These senior notes are fully and unconditionally guaranteed by Maiden Holdings.
The outlook assigned to all ratings is stable.
Maiden Holdings’ financial leverage and coverage ratios are within A.M. Best’s guidelines for its current ratings and are expected to remain so over the near term.
