Bermuda-based Ironshore Inc. has completed a private offering of $250 million of 8.50 percent senior notes due 2020. The notes were issued by Ironshore Holdings (U.S.) Inc., a wholly owned subsidiary of Ironshore, and are fully and unconditionally guaranteed by Ironshore.
The bulletin also explained that the “notes, which were sold in an offering exempt from the registration requirements of the Securities Act of 1933 under Rule 144A and Regulation S, carry investment grade ratings from both Moody’s Investor Service, Inc. and Standard & Poor’s Ratings Services.”
CEO Kevin Kelley explained: “We saw a window of opportunity and felt that it was a good time for Ironshore to enter the debt markets and secure additional capital. The proceeds from the debt will be used to continue to fuel our growth and further develop our specialty insurance platforms. It also offers us the financial flexibility to add depth to our existing businesses.
“Following our successful $300 million equity capital raise in 2009, our inaugural debt issuance was oversubscribed despite turbulent conditions in the credit markets, clearly demonstrating continued confidence in Ironshore and its growth prospects. Over the last year we have significantly expanded our operations and we are pleased to have completed this debt issuance in order to further grow and diversify our existing platforms.”
Banc of America Securities LLC, Barclays Capital Inc. and J.P. Morgan Securities Inc. acted as book-running managers for Ironshore, and Macquarie Capital (USA) Inc. acted as co-manager. Dewey & LeBoeuf LLP acted as legal counsel to Ironshore and Shearman & Sterling LLP acted as legal counsel to the initial purchasers.
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