Maiden Holdings North America Ltd. (Maiden NA), a wholly owned
Maiden Holdings Ltd.
), has priced the offering of its $152.5 million senior notes.
Rating agency A.M. Best Co. assigned "bbb-" debt rating with
stable outlook to the new notes.
The company is offering the notes that carry a coupon rate of
7.75% and scheduled to mature on Dec 1, 2043. The notes are
guaranteed by Maiden.
Maiden NA intends to deploy the net proceeds to repurchase its
outstanding 14% coupon trust preferred securities (TRUPS) when
they can be redeemed without the call premium on Jan 15, 2014.
The notes can be redeemed wholly or partly in cash from Dec 1,
2018 onwards at 100% of the principal amount.
As of Sep 30, 2013, the debt-to-capital ratio for Maiden Holdings
was 0.25x, which increased 80 basis points from the 2012-end
level. With the current issuance of $152.5 million notes, the
same is expected to increase by 780 basis points to
The new issuance is also expected to push interest expense of the
company higher that inched up slightly to $9.6 million in the
third quarter of 2013.. Nonetheless, the company's solid
operational performance generates enough funds to service the
debt sans interruption.
Recently, XLIT Ltd., a subsidiary of
XL Group plc
) has priced the offering of its $600 million senior notes.
A.M. Best Co. assigned a debt rating of "bbb" with a positive
Maiden Holdings presently carries a Zacks Rank #4 (Sell). While
we choose stay cautious on Maiden Holdings at the moment,
other better-ranked property and casualty insurers like
Cincinnati Financial Corp.
), both of which carry a Zacks Rank #1 (Strong Buy), are worth
CINCINNATI FINL (CINF): Free Stock Analysis
MAIDEN HOLDINGS (MHLD): Free Stock Analysis
XL GROUP PLC (XL): Free Stock Analysis Report
ALLEGHANY CORP (Y): Free Stock Analysis
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