Bermuda-based Max Re Capital Ltd. became the latest reinsurer to go to the capital markets for more money in the wake of the losses from Katrina and Rita. The company announced that it plans, “subject to market and other conditions,” to commence a public offering of 11,000,000 of its common shares. It could also sell an additional 1,650,000 of common shares that are subject to a 30-day option granted to the underwriters of the offering.
Max Re expects approximate losses from the two hurricanes to be around $110 million (See IJ Website Oct. 10). The company’s shares have been trading on the NASDAQ Exchange at around $24, making the sale worth around $265 million. If the underwriters exercise their option it would add another $28 million.
Banc of America Securities LLC and Citigroup Corporate and Investment Banking are acting as joint book-running managers for the offering.
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