Maiden Holdings Announces Closing of $150 Million 8.25% Non-Cumulative Perpetual Preferred Share Offering
August 29 2012 - 1:16PM
Maiden Holdings, Ltd. (Nasdaq:MHLD) today announced that it has
closed its underwritten public offering of $150 million of its
8.25% Non-Cumulative Preferred Shares (the "Preferred Shares"),
with a liquidation preference of $25.00 per share. The offering was
priced on August 22, 2012.
Total net proceeds from the offering were approximately $145.0
million, after deducting the underwriting discount and estimated
offering expenses payable by the Company. As previously announced,
Maiden expects to use the net proceeds from the offering for
continued support and development of its reinsurance business and
for other general corporate purposes, which may include
repurchasing the Company's outstanding common shares and
repurchasing the Company's outstanding 14% 30-year trust preferred
securities ("TRUPS") issued in January 2009. The Company presently
has no plans to repurchase a portion of the outstanding 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 announcement does not constitute an offer to sell or a
solicitation of an offer to buy these securities, nor will there be
any offer or sale of these securities in any state or jurisdiction
in which such an offer, solicitation or sale would be
unlawful. Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Morgan Stanley & Co. LLC, and Wells Fargo
Securities, LLC acted as the Joint Book-Running Managers for the
offering along with Senior Co-Manager Goldman, Sachs & Co. and
Co-Managers FBR Capital Markets & Co., JMP Securities LLC,
Keefe, Bruyette & Woods, Inc., and Sterne, Agee & Leach,
Inc. The Preferred Shares may be offered 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 toll-free at 1-800-294-1322; Morgan
Stanley & Co. LLC toll-free at 1-866-718-1649; or Wells Fargo
Securities, LLC, 1525 West W.T. Harris Blvd., NC0675, Charlotte,
North Carolina 28262, Attn: Capital Markets Client Support, calling
toll-free 1-800-326-5897 or e-mailing:
cmclientsupport@wellsfargo.com, 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 its 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 June 30, 2012, Maiden had $3.8 billion in assets and
shareholders' equity of $824.3 million.
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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