East Lansing, Mich.-based American Physicians Capital Inc. announced that it completed its second trust preferred pooled transaction this month, raising an additional $15 million at the holding company. The securities, which are classified as long-term debt, have a floating rate equal to the three month LIBOR plus 420 basis points and mature in 30 years. The securities can be called by the issuer after five years from the date of issuance.
The funds will be retained at the holding company, and may be used to fund future debt service requirements, stock repurchases, support future premium growth through allocation to insurance subsidiaries, or for other general corporate purposes.
APCapital is a national provider of medical professional liability coverage and workers’ compensation, through American Physicians Assurance Corp. and other subsidiaries. The group of companies is rated “A-” (excellent) by A. M. Best and “A-” by Standard & Poor’s.
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