AXIS to Raise $400 Million from Common and Preferred Share Sales

Bermuda’s AXIS Capital Holdings Limited announced that it has agreed to sell 6.8 million common shares in a block trade. It also intends to offer, subject to market conditions, a certain amount of preferred securities.

AXIS common shares have been trading on the New York Stock Exchange in the $30 range. Based on the closing price of $29.71, the common offering would raise around $202 million.

AXIS said: “Citigroup Corporate and Investment Banking has agreed to purchase the common shares from AXIS Capital and subsequently sell the common shares to public investors. The common shares are being offered under AXIS Capital’s Form S-3 shelf registration statement, which was declared effective on October 11, 2005.”

The company indicated that it plans to use the proceeds to “for general corporate purposes, primarily to enhance the funding of its insurance and reinsurance operating subsidiaries.”

AXIS also said it “intends to offer, subject to market conditions, approximately $200 million in preferred securities. Any preferred securities offering will be made pursuant to a prospectus supplement to AXIS Capital’s currently effective shelf registration statement. AXIS Capital expects to use the proceeds for general corporate purposes. The completion of the common shares offering and any preferred securities offering are not contingent on one another.”