Arch Capital Group Ltd. Announces Public Offering of 4,000,000 Depositary Shares Representing Series F Preferred Shares

Insurance Weekly News

By a News Reporter-Staff News Editor at Insurance Weekly News -- Arch Capital Group Ltd. (NASDAQ:ACGL) announced that it has priced an underwritten public offering of 4,000,000 Depositary Shares, each of which represents a 1/1,000th interest in a 5.45% Non-Cumulative Preferred Share, Series F, of ACGL (the Series F Preferred Shares). The public offering price is $25.16 per Depositary Share for an aggregate public offering price of $100,640,000, including accrued dividends of $0.39 per Depositary Share. This offering is an additional issuance of its Series F Preferred Shares originally issued in August of 2017. The Company intends to use the net proceeds of this offering to redeem all of its issued and outstanding Series C Non-Cumulative Preferred Shares with any remaining amounts to be used for general corporate purposes. The offering is expected to close on December 1, 2017, subject to customary closing conditions. Upon closing, the additional Depositary Shares will be listed on NASDAQ, under the existing 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 is being led by Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC as joint book-running managers.

Arch Capital Group Ltd., a Bermuda-based company with approximately $11.04 billion in capital at September 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 preliminary prospectus supplement, forming a part of the effective registration statement.