Greenlight Capital Re, Ltd. Announces Proposed $100 Million Offering of Convertible Notes
August 02 2018 - 8:05AM
Greenlight Capital Re, Ltd. (NASDAQ: GLRE) (the “Company” of
“Greenlight Re”), a specialist property and casualty reinsurance
company headquartered in the Cayman Islands, today announced that
it proposes to offer, subject to market conditions and other
factors, $100,000,000 in aggregate principal amount of its
Convertible Senior Notes due 2023 (the “Notes”) in a private
offering that is exempt from the registration requirements of the
Securities Act of 1933, as amended (the “Securities Act”).
The Company expects to grant the initial purchasers of the
Notes a 30-day option to purchase up to $15,000,000 additional
principal amount of the Company’s Notes.
Concurrently with the pricing of the Notes, the Company intends
to repurchase up to one million shares of its Class A ordinary
shares in order to take advantage of the current market price
discount to the book value of the Class A ordinary shares. The
Company intends to use a portion of the net proceeds from the sale
of the Notes to make such repurchases and to use the remainder of
the net proceeds to make contributions to the capital and surplus
of one or both of its reinsurance subsidiaries and for general
corporate purposes. Any such repurchases may increase, or prevent a
decrease in, the market price of the Company’s Class A ordinary
shares or the Notes, which could result in higher effective
conversion price for the notes.
The Notes will be offered and sold to persons
reasonably believed to be qualified institutional buyers pursuant
to Rule 144A under the Securities Act.
The Notes and the Class A ordinary shares
issuable upon conversion, if any, have not been and will not be
registered under the Securities Act or applicable state securities
laws and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state laws.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy securities, nor shall
there be any sale of securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Greenlight Capital Re,
Ltd.
Established in 2004, Greenlight Re
(www.greenlightre.com) is a NASDAQ listed company with specialist
property and casualty reinsurance companies based in the Cayman
Islands and Ireland. Greenlight Re provides risk management
products and services to the insurance, reinsurance and other risk
marketplaces. The Company focuses on delivering risk
solutions to clients and brokers by whom Greenlight Re’s expertise,
analytics and customer service offerings are demanded. With
an emphasis on deriving superior returns from both sides of the
balance sheet, Greenlight Re manages its assets according to a
value-oriented equity-focused strategy that supports the goal of
long-term growth in book value per share.
Forward-Looking Statements
This news release contains forward-looking
statements within the meaning of the U.S. federal securities laws.
We intend these forward-looking statements to be covered by the
safe harbor provisions for forward-looking statements in the U.S.
Federal securities laws. These statements involve risks and
uncertainties that could cause actual results to differ materially
from those contained in forward-looking statements made on behalf
of the Company. These risks and uncertainties include the impact of
general economic conditions and conditions affecting the insurance
and reinsurance industry, the adequacy of our reserves, our ability
to assess underwriting risk, trends in rates for property and
casualty insurance and reinsurance, competition, investment market
fluctuations, trends in insured and paid losses, catastrophes,
regulatory and legal uncertainties and other factors described in
our annual report on Form 10-K filed with the Securities Exchange
Commission. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
For further information contact:
Investor Relations:Adam PriorThe Equity Group
Inc.(212) 836-9606IR@greenlightre.ky
Public Relations/Media:Mairi MallonRein4ce+44
(0)203 786 1160mairi.mallon@rein4ce.co.uk
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