8-KOther Events

Chubb Ltd 8-K Report (May 30, 2003)

Filed May 30, 2003For Securities:CB

Summary

This 8-K filing from Chubb Ltd (CB), filed on May 29, 2003, announces the company's intention to conduct an underwritten public offering of 23,000,000 Depositary Shares. Each Depositary Share represents 1/10th of a Series C Cumulative Redeemable Preferred Share, with a stated dividend rate of 7.80%. This offering is a means for the company to raise capital. Investors considering this offering should note the liquidation preference of $25.00 per Depositary Share, which is derived from the $250.00 liquidation preference per underlying Preferred Share. The offering is registered under a previously effective Form S-3 Registration Statement (File No. 333-88482), indicating that regulatory hurdles for the sale have been cleared. The filing also includes exhibits such as the Terms Agreement and Underwriting Agreement with the representatives of the underwriters (Citigroup Global Markets Inc., Merrill Lynch & Co., and Merrill Lynch, Pierce, Fenner & Smith Incorporated), and resolutions from the Board of Directors establishing the terms of the Series C Preferred Shares.

Key Highlights

  • 1Chubb Ltd (CB) intends to issue 23,000,000 Depositary Shares in an underwritten public offering.
  • 2The offering is for Series C Cumulative Redeemable Preferred Shares with a stated dividend of 7.80%.
  • 3Each Depositary Share represents a 1/10th interest in a Preferred Share.
  • 4The liquidation preference for each Depositary Share is $25.00.
  • 5The offering is registered under a previously effective Form S-3 Registration Statement (File No. 333-88482).
  • 6Key agreements with underwriters, including Citigroup and Merrill Lynch, are filed as exhibits.
  • 7Board resolutions confirming the terms of the Series C Preferred Shares are included as exhibits.

Frequently Asked Questions

This filing (8-K) announces Chubb Ltd's intention to conduct a public offering of preferred equity to raise capital.

The company is offering Depositary Shares, each representing a fraction of Series C Cumulative Redeemable Preferred Shares. These preferred shares carry a fixed dividend rate of 7.80%.

Each Depositary Share has a liquidation preference of $25.00. This means that in the event of liquidation, holders of these shares are entitled to receive $25.00 per Depositary Share before common shareholders receive any distribution. This is derived from the $250.00 liquidation preference of the underlying preferred share.

Yes, the offering is registered under Chubb Ltd's Form S-3 Registration Statement (File No. 333-88482), which was declared effective on February 4, 2003. This indicates that the necessary regulatory approvals are in place.