RenaissanceRe Holdings Ltd.
) announced a public offer to sell 11 million 5.375% Series E
preference shares of $275 million or $25 per share, having
liquidity preference. The offer is underwritten and is expected
to be completed on May 28, 2013, subject to customary closing
Moreover, in case of over-allotment, the underwriters have the
option of buying another 1.65 million preference shares of
Renaissance within 30 days. This amounts to aggregate liquidation
preference of $41.25 per share.
RenaissanceRe will pay a non-cumulative dividend of 5.375% of
the liquidation preference per annum on the preference shares.
Moreover, the dividend will be paid only if the board of
directors approves it.
RenaissanceRe plans to enlist the new shares on the New York
Stock Exchange under the ticker "RNRPRE." The company holds the
right to redeem all or a part of the new preference shares for
$25 per share any time after Jun 1, 2018.
RenaissanceRe will use the proceeds from the issue to redeem
the outstanding 6.6% Series D preference shares. The remaining
proceeds will be used to redeem all or a part of the outstanding
6.08% Series C preference shares. The company had 6 million
Series D preference shares and 10 million Series C preference
shares outstanding as of Mar 31, 2013.
RenaissanceRe currently caries a Zacks Rank #3 (Hold). Other
property and casualty insurers worth considering are
Montpelier Re Holdings Ltd.
AXIS Capital Holdings Ltd.
). All these companies carry a Zacks Rank #1 (Strong Buy).
AXIS CAP HLDGS (AXS): Free Stock Analysis
MONTPELIER RE (MRH): Free Stock Analysis
PROASSURANCE CP (PRA): Free Stock Analysis
RENAISSANCERE (RNR): Free Stock Analysis
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