AmTrust Financial Services, Inc.
) announced the pricing of its public offer of Series A
preference shares. The shares have a face value of $25 per share,
with aggregate liquidity preference of $115 million.
These shares of AmTrust carry a fixed dividend of 6.75% per
annum of the liquidity preference. The dividend is non-cumulative
and will be paid quarterly on Mar 15, Jun 15, Sep 15 and Dec 15
of each year.
However, the payment of the dividend is subject to the
approval of AmTrust's board of directors. The first quarterly
dividend is payable on Sep 15, 2013.
The public offer for the 4.6 million preference shares of
AmTrust has been underwritten. The offer is expected to close on
Jun 10, 2013, subject to customary closing conditions.
AmTrust can redeem these preference shares fully or in parts
after Jun 10, 2018. The shares will be redeemed at $25 per share.
Additionally, the company will also pay any declared and unpaid
dividend for prior dividend periods and any accrued and unpaid
dividend for the dividend period in which the redemption takes
AmTrust intends to use the proceeds from the issue for its
general corporate needs. The company plans to get the preference
shares listed on the New York Stock Exchange.
AmTrust carries a Zacks Rank #3 (Hold). Other property and
casualty insurers worth considering are
American Safety Insurance Holdings Ltd.
Catlin Group Ltd.
). All these companies carry a Zacks Rank #1 (Strong Buy).
AMTRUST FIN SVC (AFSI): Free Stock Analysis
AMER SAFETY INS (ASI): Free Stock Analysis
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