Maiden Holdings Announces Closing of $100 Million Offering of 8% Senior Notes Due March 27, 2042
March 27 2012 - 12:20PM
Maiden Holdings, Ltd. (Nasdaq:MHLD) ("Maiden" or "the Company")
today announced that its wholly-owned U.S. holding company, Maiden
Holdings North America, Ltd. ("Maiden NA"), has closed its offering
of $100 million aggregate principal amount of 8% Senior Notes due
March 27, 2042 (the "Notes"), which are fully and unconditionally
guaranteed by Maiden. The offering was priced on March 20, 2012.
Total net proceeds from the offering were approximately $96.6
million, after deducting the underwriting discount and estimated
offering expenses payable by Maiden NA and the Company. As
previously announced, the net proceeds from this offering will be
used for general corporate purposes, which may include repurchasing
the Company's outstanding 14% 30-year trust preferred securities
("TRUPS") issued in January 2009 or for working capital. The
Company presently has no intention to repurchase a portion of the
TRUPS with these proceeds prior to January 20, 2014, and expects to
invest such net proceeds in marketable fixed income securities and
short term investments.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any of these or any other
securities, nor will there be any sale of these or any other
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. Merrill Lynch, Pierce, Fenner & Smith
Incorporated acted as the Book-Running Manager for the offering
along with Co-Managers FBR Capital Markets & Co., JMP
Securities LLC, Keefe, Bruyette & Woods, Inc., and Sterne, Agee
& Leach, Inc. The offering of the Notes will be made only
by means of a prospectus supplement and accompanying base
prospectus, copies of which may be obtained by contacting Merrill
Lynch, Pierce, Fenner & Smith Incorporated by calling toll-free
at 1-800-294-1322, or by visiting the SEC website at
www.sec.gov.
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda-based holding company formed
in 2007. Through our subsidiaries, which are each A- rated
(excellent) by A.M. Best, the Company is focused on providing
non-catastrophic, customized reinsurance products and services to
small and mid-size insurance companies in the United States and
Europe. As of December 31, 2011, Maiden had $3.4 billion
in assets and shareholders' equity of $768.6 million. The Maiden
Holdings, Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5006.
The Maiden Holdings, Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5006
Forward Looking Statements
This release contains "forward-looking statements" which are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements are based on the Company's current expectations and
beliefs concerning future developments and their potential effects
on the Company. There can be no assurance that actual developments
will be those anticipated by the Company. Actual results may differ
materially from those projected as a result of significant risks
and uncertainties, including non-receipt of the expected payments,
changes in interest rates, effect of the performance of financial
markets on investment income and fair values of investments,
developments of claims and the effect on loss reserves, accuracy in
projecting loss reserves, the impact of competition and pricing
environments, changes in the demand for the Company's products, the
effect of general economic conditions, adverse state and federal
legislation, regulations and regulatory investigations into
industry practices, developments relating to existing agreements,
heightened competition, changes in pricing environments, and
changes in asset valuations. Additional information about these
risks and uncertainties, as well as others that may cause actual
results to differ materially from those projected is contained in
Item 1A. Risk Factors in the Company's Annual Report on Form 10-K
for the year ended December 31, 2011 as updated in periodic filings
with the SEC. The Company undertakes no obligation to publicly
update any forward-looking statements, except as may be required by
law.
CONTACT: Noah Fields, Vice President, Investor Relations
Maiden Holdings, Ltd.
Phone: 441.298.4927
E-mail: nfields@maiden.bm
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