Summary
Arch Capital Group Ltd. (ACGL) announced on August 16, 2017, the pricing of a significant underwritten public offering of 8,000,000 depositary shares, each representing a 1/1,000th interest in its 5.45% Non-Cumulative Preferred Shares, Series F. This offering, priced at $25 per depositary share, is expected to raise approximately $200 million before expenses. The company also granted underwriters an option to purchase an additional 1.2 million depositary shares to cover potential over-allotments. This capital raise, conducted under an effective shelf registration statement, is anticipated to close on August 17, 2017. The issuance of preferred shares aims to strengthen the company's capital structure, providing additional resources for general corporate purposes and potentially enhancing its financial flexibility and growth capacity. Investors should note the fixed dividend rate of 5.45% and the non-cumulative nature of these preferred shares.
Key Highlights
- 1Arch Capital Group Ltd. (ACGL) priced an underwritten public offering of 8,000,000 depositary shares.
- 2Each depositary share represents a 1/1,000th interest in 5.45% Non-Cumulative Preferred Shares, Series F.
- 3The offering price is $25 per depositary share, totaling an aggregate public offering price of $200 million.
- 4Underwriters have a 30-day option to purchase an additional 1,200,000 depositary shares for potential over-allotment.
- 5The offering is being made under an effective shelf registration statement.
- 6The offering is expected to close on August 17, 2017.
- 7The purpose of the offering is to raise capital for general corporate purposes.