Philadelphia Consolidated Holding Corp. announced that it has filed a registration statement with the SEC preliminary to a public offering of 4 million shares of its common stock.
The company, which markets specialty property and casualty insurance products, plans to sell 3 million shares and James J. Maguire, its CEO and Board Chairman plans to sell 1 million. Only the sales of company shares will benefit Philadelphia Consolidated, which plans to use the proceeds to provide additional capital for its insurance subsidiaries and for general corporate purposes.
The company announced minimal losses of between $1.5 and $2 million from the Sept. 11 attacks, mostly from business interruption claims. Its shares closed at $40 on Friday, which translates into an increase in capital of around $120 million. In addition the company has granted the lead managers, Merrill Lynch and Banc of America Securities LLC an option to purchase up to 600,000 additional shares to cover over-allotments.
The offering price of the shares has not yet been determined.
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