Selective Insurance Group, a Branchville, N.J.-based holding company for five property and casualty insurance companies offering primary and alternative market insurance for commercial and personal risks, announced a private offering of convertible notes in order to raise $100 million.
The notes are convertible into shares of Select’s common stock and mature in 2032. The offering will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933.
The company intends to contribute $60 million (approximately $72 million if the initial purchasers’ over allotment option is exercised in full) of the net proceeds to an irrevocable trust to provide for certain payment obligations in respect of the company’s outstanding debt obligations.
The remainder of the net proceeds of the offering will be used for general corporate purposes, which may include additions to the capital of the Select’s insurance operating subsidiaries.
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