Arch Capital Group Ltd. Announces Closing of $200 Million Public Offering of Depositary Shares Representing Series F Preferred Shares

By a News Reporter-Staff News Editor at Insurance Weekly News -- Arch Capital Group Ltd. [NASDAQ: ACGL] announced that it has closed an underwritten public offering of 8,000,000 Depositary Shares, each of which represents a 1/1,000th interest in a 5.45% Non-Cumulative Preferred Share, Series F, of ACGL. The public offering price is $25 per Depositary Share for an aggregate public offering price of $200 million. The underwriters have been granted a 30-day over-allotment option to purchase up to an additional 1,200,000 Depositary Shares. The Company intends to use the net proceeds of this offering to redeem in part its outstanding Series C Non-Cumulative Preferred Shares. The Depositary Shares have been approved for listing on NASDAQ under the symbol "ACGLO."

On or after August 17, 2022, the Company may redeem all or a portion of the Series F Preferred Shares at a redemption price equal to $25,000 per Series F Preferred Share (equivalent to $25 per Depositary Share), plus declared and unpaid dividends, if any, to, but excluding, the date of redemption.

The offering was led by Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC and J.P. Morgan Securities LLC as joint book-running managers.

The Company also announced that it had called for redemption on September 18, 2017, 8,000,000 of its outstanding of 6.75% Series C Non-Cumulative Preferred Shares. The Series C Non-Cumulative Preferred Shares will be redeemed at a redemption price equal to $25.00 per share (an aggregate redemption price of $200 million), plus all declared and unpaid dividends to (but excluding) the redemption date. The record date for payment of the dividend on the Series C Non-Cumulative Preferred Shares being redeemed is September 15, 2017.

Arch Capital Group Ltd., a Bermuda-based company with approximately $11.13 billion in capital at June 30, 2017, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which the offer, solicitation or sale is not permitted. The offering is being made pursuant to the Company's effective shelf registration statement previously filed with the Securities and Exchange Commission. This offering may be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.

Keywords for this news article include: Financial Companies, Arch Capital Group Ltd., Property and Casualty Insurance Companies.

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