Maiden Holdings, Ltd. Announces Closing of Mandatory Convertible Preference Share Offering
October 01 2013 - 4:19PM
Maiden Holdings, Ltd. ("Maiden" or "the Company") (Nasdaq:MHLD)
today announced that it has closed its underwritten public offering
of 3,000,000 7.25% Mandatory Convertible Preference Shares, Series
B, with a liquidation value of $50.00 per preference share. In
addition, the underwriters have exercised their over-allotment
option to purchase 300,000 additional shares of Mandatory
Convertible Preferred Shares. The Company expects the issuance of
additional shares to settle on or about October 3, 2013, subject to
customary closing conditions. The offering was made under the
Company's existing shelf registration statement filed with the
Securities and Exchange Commission ("SEC").
Total net proceeds from the offering will be approximately
$159.5 million, after deducting the underwriting discount and
estimated offering expenses payable by the Company, and after
giving effect to the underwriters' exercise of the option to
purchase 300,000 additional shares. As previously announced, Maiden
intends to use the net proceeds from the offering for general
corporate purposes, primarily to support the continuing growth of
its reinsurance operations. Pending application of the net proceeds
towards general corporate purposes, Maiden expects to invest the
net proceeds from the offering in marketable fixed income
securities and short term investments.
Goldman, Sachs & Co., Morgan Stanley & Co. LLC and BofA
Merrill Lynch are the Joint Book-Running Managers for the offering
along with Joint Lead Manager Wells Fargo Securities, LLC. and
Co-Managers FBR Capital Markets & Co., Sterne, Agee &
Leach, Inc. and JMP Securities LLC.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
Any offers of the securities will be made exclusively by means of a
prospectus supplement and accompanying prospectus. Copies of the
prospectus and the prospectus supplement relating to the offering
may be obtained from:
Goldman, Sachs & Co. |
Morgan Stanley & Co. LLC |
Prospectus Department |
180 Varick Street |
200 West Street |
New York, New York 10014 |
New York, NY 10282 |
Attention: Prospectus Department |
telephone: (866) 471-2526 |
|
facsimile: (212) 902-9316 |
|
email: prospectus-ny@ny.email.gs.com |
|
|
|
BofA Merrill Lynch |
|
Attention: Prospectus Department |
|
222 Broadway |
|
New York, New York 10038 |
|
email: dg.prospectus_requests@baml.com |
|
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, Maiden 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, 2013, Maiden had $4.4 billion in assets and
shareholders' equity of $956.4 million.
Forward-looking Statements Safe Harbor
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 Maiden's current expectations and beliefs
concerning future developments and their potential effects on
Maiden. There can be no assurance that actual developments will be
those anticipated by Maiden. 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 Maiden's products, the
effect of general economic conditions and unusual frequency of
storm activity, 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 Maiden's Annual
Report on Form 10-K for the year ended December 31, 2012 as updated
in periodic filings with the SEC. Maiden 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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