Maiden Holdings, Ltd. Announces Redemption of 14% Trust Preferred Securities
January 15 2014 - 11:30AM
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 redeemed all of the
outstanding 14% trust preferred securities ("TRUPs") with a face
value of $152.5 million. Maiden utilized the proceeds of its fourth
quarter 2013 issuance of 30 year, 7.75% senior notes to redeem the
TRUPs.
Art Raschbaum, Chief Executive Officer of Maiden said, "The
TRUPs, which were issued in early 2009, at the height of the
financial crisis when funding was virtually unavailable, have been
a critical component in enabling Maiden to execute its lower
volatility client-centric reinsurance business strategy. Going
forward, the redemption of the TRUPs significantly improves
Maiden's cost of capital, which should enhance Maiden's
profitability in 2014 and beyond."
As a result of the redemption, in the first quarter 2014 the
Company will incur an additional non-recurring non-cash charge of
$26.1 million, which represents the accelerated amortization of
original issue discount associated with the TRUPs.
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda-based holding company formed
in 2007. Through its subsidiaries, which each have a
financial strength rating of A- (excellent) from 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 September 30,
2013, Maiden had $4.4 billion in assets and shareholders' equity of
$973.5 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, 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
Maiden (NASDAQ:MHLD)
Historical Stock Chart
From Sep 2024 to Oct 2024
Maiden (NASDAQ:MHLD)
Historical Stock Chart
From Oct 2023 to Oct 2024