Arch Capital raises $50m in depository share offering
Arch Capital Group has priced an underwritten public offering of 20 million depositary shares, each of which represents a 1/1,000 interest in a 4.550 percent non-cumulative preferred share series G.
The public offering price is $25 per depositary share for an aggregate public offering price of $500 million. Arch said it will use the net proceeds to redeem all or a portion of its issued and outstanding series E non-cumulative preferred shares in September 2021. Any remaining capital will be used for general corporate purposes.
The offering is expected to close on June 11, 2021, subject to customary closing conditions. Arch has applied to list the depositary shares on Nasdaq. After this date it may redeem all or a portion of the series G preferred shares at a redemption price equal to $25,000 per preferred share, equivalent to $25 per depositary share, plus declared and unpaid dividends.
The offering is being led by BofA Securities, JP Morgan Securities, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities as joint book-running managers.
