Bermuda’s ACE Limited announced that it has “agreed to sell in a public offering 20 million 7.80% Cumulative Redeemable Preferred Shares, Series C, in the form of depositary shares, for $25.00 per depositary share.” (See IJ Website May 6)
ACE also said it had “granted the underwriters of the offering an option to purchase an additional 3 million shares at the same price to cover over allotments.” The company intends to use the net proceeds of the offering to make additional capital contributions to some of its subsidiaries and for general corporate purposes.
ACE indicated that the offering completes its previously announced financing plans, and that “no further capital raising activities are anticipated at this time.”
It said the shares, which will trade on the New York Stock Exchange under the symbol “ACE PrC”, will have an annual dividend rate of 7.80%. The first quarterly dividend will be payable on September 1, 2003. “The shares will not be convertible into or exchangeable for ACE’s ordinary shares,” and the company “may redeem these shares at any time after May 30, 2008 at a redemption value of $25.00 per depositary share. ACE may also redeem the shares at any time under certain limited circumstances.”
Citigroup Global Markets Inc. and Merrill Lynch are acting as joint book-running managers for the offering.
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