PROSPECTUS SUPPLEMENT
Dated December 2, 2020
(To Prospectus dated December 2, 2020)
8,000,000 Depositary Shares
Each Representing a 1/1,000th Interest in a Share of
4.60% Non-Cumulative Preferred Stock, Series B
Each of the 8,000,000 depositary shares offered hereby (the “depositary shares”) represents a 1/1,000th interest in a share of 4.60% Non-Cumulative Preferred Stock, Series B, $25,000 liquidation preference per share (equivalent to $25.00 per depositary share) (the “Series B preferred stock”) of Selective Insurance Group, Inc., deposited with Equiniti Trust Company as depositary (the “Depositary”). The depositary shares are evidenced by depositary receipts. As a holder of depositary shares, you are entitled to a proportional fractional interest in all rights and preferences of the Series B preferred stock (including dividend, voting, redemption and liquidation rights). You must exercise these rights through the Depositary.
We will pay dividends on the Series B preferred stock only when, as and if declared by our board of directors (or a duly authorized committee thereof) out of funds legally available for the payment of dividends. Any such dividends will be payable at a rate of 4.60% per annum, on a non-cumulative basis from the date of original issue, quarterly in arrears on the 15th day of March, June, September and December of each year, commencing on March 15, 2021. Payment of dividends on the Series B preferred stock is subject to certain restrictions as described elsewhere in this prospectus supplement, or in the documents incorporated by reference herein. Distributions will be made in respect of the depositary shares if and to the extent dividends are paid on the Series B preferred stock.
Dividends on the Series B preferred stock will not be cumulative and will not be mandatory. Accordingly, if dividends are not declared on the Series B preferred stock for any dividend period, then any accrued dividends for that period shall cease to accrue and be payable. If our board of directors (or a duly authorized committee thereof) has not declared a dividend in respect of any dividend period, we will have no obligation to pay dividends accrued for such dividend period on or after the dividend payment date for that dividend period, whether or not dividends on the Series B preferred stock are declared for any future dividend period.
We may, at our option, redeem the Series B preferred stock (a) in whole or in part, from time to time, on or after December 15, 2025, at a redemption price equal to $25,000 per share of Series B preferred stock (equivalent to $25.00 per depositary share), plus an amount equal to any declared but unpaid dividends and the portion of the quarterly dividend per share attributable to the then-current dividend period that has not been declared and paid to, but excluding, such redemption date, (b) in whole but not in part, at any time prior to December 15, 2025, within 90 days after the occurrence of a “rating agency event,” at a redemption price equal to $25,500 per share of Series B preferred stock (102% of the stated amount of $25,000 per share) (equivalent to $25.50 per depositary share), plus an amount equal to any declared but unpaid dividends and the portion of the quarterly dividend per share attributable to the then-current dividend period that has not been declared and paid to, but excluding, such redemption date and (c) in whole but not in part, at any time prior to December 15, 2025, within 90 days after the occurrence of a “regulatory capital event,” at a redemption price equal to $25,000 per share of Series B preferred stock (equivalent to $25.00 per depositary share), plus an amount equal to any declared but unpaid dividends and the portion of the quarterly dividend per share attributable to the then-current dividend period that has not been declared and paid to, but excluding, such redemption date. If we redeem the Series B preferred stock, the Depositary will redeem a proportionate number of depositary shares. Neither you, as a holder of depositary shares, nor the Depositary will have the right to require the redemption or repurchase of the Series B preferred stock or the depositary shares. See “Description of the Series B Preferred Stock — Optional Redemption.”
The Series B preferred stock will not have voting rights, except with respect to certain fundamental changes in the terms of the Series B preferred stock. A holder of depositary shares will be entitled to direct the Depositary to vote in such circumstances. See “Description of the Depositary Shares — Voting of the Depositary Shares.”
We have applied to list the depositary shares on The Nasdaq Stock Market LLC (“Nasdaq”) under the symbol “SIGIP.” If approved for listing, we expect trading of the depositary shares on Nasdaq to commence within 30 days after they are first issued.
Investing in the depositary shares and the underlying Series B preferred stock involves risks. See “Risk Factors” beginning on page
S-7 of this prospectus supplement, page 2 of the accompanying prospectus and the risk factors described in our periodic reports filed with the U.S. Securities and Exchange Commission (the “SEC”) that are incorporated by reference into this prospectus supplement.
Neither the SEC nor any other regulatory body has approved or disapproved of the depositary shares and the underlying Series B preferred stock or passed upon the accuracy or adequacy of this prospectus supplement or the accompanying prospectus. Any representation to the contrary is a criminal offense.
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Per Depositary
Share
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Total
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Public offering price(1)
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$
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25.00000
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$
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200,000,000
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Underwriting discount(2)
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$
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0.50755
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$
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4,060,432.50
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Proceeds, before expenses, to us
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$
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24.49245
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$
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195,939,567.50
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(1)
The price to the public does not include accrued dividends, if any, that may be declared. Dividends, if declared, will accrue from the date of original issuance, which is expected to be December 9, 2020.
(2)
Reflects depositary shares sold to retail investors, for which the underwriters will receive an underwriting discount of $0.7875 per depositary share, and depositary shares sold to institutional investors, for which the underwriters will receive an underwriting discount of $0.5000 per depositary share. See “Underwriting” for a description of compensation to the underwriters.
The underwriters expect to deliver the depositary shares in book-entry form through the facilities of The Depository Trust Company for the accounts of its participants, which include Clearstream Banking, S.A. and Euroclear Bank SA/NV, against payment in New York, New York on or about December 9, 2020.
Joint Book-Running Managers
Wells Fargo Securities BofA Securities RBC Capital Markets
Joint Lead Managers
Credit Suisse
Goldman Sachs & Co. LLC
Co-Managers
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Boenning & Scattergood
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BMO Capital Markets
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Keefe, Bruyette & Woods
A Stifel Company
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JMP Securities
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Piper Sandler
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