8-KOther EventsExhibits & Filings

ARCH CAPITAL GROUP LTD. 8-K Report, Corporate Update (Aug 30, 2021)

Filed August 30, 2021For Securities:ACGLACGLNACGLO

Summary

Arch Capital Group Ltd. (ACGL) announced on August 30, 2021, its intention to redeem all of its outstanding 5.25% Series E Non-Cumulative Preferred Shares (Series E Preferred Shares) on September 30, 2021. This redemption affects 18,000,000 depositary shares, each representing a 1/1,000th interest in a Series E Preferred Share. Investors holding these Series E Preferred Shares will receive a redemption price of $25,000 per Series E Preferred Share, which translates to $25.00 per depositary share. Additionally, holders of record as of September 15, 2021, will receive the third quarter 2021 dividend of $328.125 per Series E Preferred Share ($0.328125 per depositary share), with both payments scheduled for the redemption date of September 30, 2021. This action signals a move by the company to retire this specific series of preferred stock.

Key Highlights

  • 1Arch Capital Group Ltd. (ACGL) is calling for redemption of its 5.25% Series E Non-Cumulative Preferred Shares.
  • 2The redemption date is set for September 30, 2021.
  • 3A total of 18,000,000 depositary shares representing the Series E Preferred Shares are being redeemed.
  • 4The redemption price is $25,000 per Series E Preferred Share, or $25.00 per depositary share.
  • 5Shareholders of record as of September 15, 2021, will receive the Q3 2021 dividend ($0.328125 per depositary share).
  • 6Both the redemption price and the dividend will be paid on the redemption date of September 30, 2021.
  • 7The company has attached a press release detailing this redemption as an exhibit.

Frequently Asked Questions

Arch Capital Group Ltd. is redeeming all of its outstanding 5.25% Series E Non-Cumulative Preferred Shares (represented by depositary shares) on September 30, 2021.

Holders will receive the redemption price of $25,000 per Series E Preferred Share ($25.00 per depositary share). In addition, shareholders of record as of September 15, 2021, will receive the third quarter 2021 dividend of $328.125 per Series E Preferred Share ($0.328125 per depositary share).

Both the redemption price and the dividend will be paid on the redemption date, which is September 30, 2021.

The filing does not explicitly state the reason for the redemption. Companies typically redeem preferred stock for various strategic reasons, such as reducing interest expenses if market rates are lower, restructuring their capital, or if the terms of the preferred stock allow for it after a certain period.