Bermuda-based PartnerRe announced the prices and terms of two concurrent securities offerings, expected to raise $375 million. Standard & Poor’s has given its single-‘A’-minus ratings to both securities.
The reinsurer will issue $200 million worth of trust-preferred shares, maturing on December 31, 2031, and $175 million worth of of mandatory convertible preferred shares (PEPS) which mature on December 31, 2004 and are expected to be converted to common shares. The offers are expected to close on November 21.
S&P noted that the two offerings would replenish PartnerRe’s capitalization in the wake of the Sept. 11 attacks and would support its double-A’ ratings and provide for additional growth.”The issues reflect the importance of capital strength in PartnerRe’s market positioning as a provider of strong and consistent reinsurance capacity and the willingness to take appropriate steps within management’s resources to support maintenance of capital adequacy at this rating level,” S&P indicated.
Topics Mergers & Acquisitions
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