Summary
Arch Capital Group Ltd. (ACGL) filed an 8-K on September 23, 2016, to report a significant financing event. The company entered into a Purchase Agreement on September 22, 2016, for an underwritten public offering of 18,000,000 Depositary Shares. Each share represents a 1/1,000th interest in its 5.25% Non-Cumulative Preferred Shares, Series E. The offering's gross proceeds are expected to be $450 million, with an additional option for underwriters to purchase up to 2,700,000 more Depositary Shares to cover over-allotments.
Key Highlights
- 1Arch Capital Group Ltd. announced a public offering of Depositary Shares representing preferred stock.
- 2The offering involves 18,000,000 Depositary Shares at a public offering price of $25 per share.
- 3The aggregate gross proceeds from the offering are expected to be approximately $450 million.
- 4The preferred shares are designated as 5.25% Non-Cumulative Preferred Shares, Series E.
- 5Underwriters have an option to purchase an additional 2,700,000 Depositary Shares for over-allotment, potentially increasing proceeds by up to $67.5 million.
- 6The offering is being conducted under an effective shelf registration statement.
- 7The offering was expected to close on September 29, 2016.
Frequently Asked Questions
This 8-K filing reports on Arch Capital Group Ltd.'s entry into a material definitive agreement for a public offering of Depositary Shares representing preferred stock. It also includes a press release announcing the offering.
The company is raising approximately $450 million from the sale of 18,000,000 Depositary Shares. If the underwriters exercise their over-allotment option, the total capital raised could increase by an additional $67.5 million.
Arch Capital Group Ltd. is offering Depositary Shares, where each share represents a 1/1,000th interest in a share of its 5.25% Non-Cumulative Preferred Shares, Series E.
The offering was expected to close on September 29, 2016.