Endurance Sets Terms on $250 Million Notes Offering

Bermuda-based Endurance Specialty Holdings Ltd. announced that $250 million in principal amount of 7 percent Senior Notes will initially be offered by the underwriters at a price of 99.108 percent of their principal amount, providing an effective yield of 7.072 percent. Unless previously redeemed, they will mature on July 15, 2034.

Endurance said it “expects to use a portion of the net proceeds from the offering to repay the $103 million term loan outstanding under its bank credit facility and to use the remaining proceeds for general corporate purposes, including potential acquisitions and repurchases of its shares and share equivalents.”

The debt issuance is part of a capital raising initiative, which included the filing of a shelf registration statement announced in June (See IJ Website June 16). The joint-book running managers are J.P. Morgan Securities Inc. and Barclays Capital Inc.