Bermuda-based Endurance Specialty Holdings Ltd., a global provider of property and casualty insurance and reinsurance, has agreed to sell approximately 6.1 million ordinary shares in a block trade, raising approximately $200 million in total proceeds, and that it intends to offer, subject to market conditions, preferred securities and senior notes.
Goldman, Sachs & Co. has agreed to purchase the ordinary shares from Endurance and subsequently sell the ordinary shares to public investors. The ordinary shares are being offered under Endurance’s Form S-3 shelf registration statement. Endurance expects to use the proceeds from the sale of its ordinary shares to provide additional capital to its subsidiaries and for other general corporate purposes.
Endurance intends to offer, subject to market conditions, approximately $200 million in preferred securities and approximately $200 million in senior notes. Any preferred securities and senior notes offerings will be made pursuant to prospectus supplements to Endurance’s currently effective shelf registration statement.
Endurance expects to use the proceeds from these future offerings to provide additional capital to its subsidiaries, for other general corporate purposes and, in the case of the senior notes offering, the repayment of $143.5 million of currently outstanding bank debt. The consummation of the ordinary shares offering, any preferred securities offering and any senior notes offering are not contingent on one another.
Kenneth LeStrange, Endurance’s chairman and chief executive officer, commented, “Our capital raising initiatives, which began today with our raising of approximately $200 million in common equity, are designed to maintain Endurance’s conservative financial position for its clients and provide sufficient capital to take advantage of future market opportunities. We intend to utilize the full range of capital market instruments available to us in order to optimize our mix and cost of capital.”
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