Argo Group International has priced an underwritten public offering of 6 million depositary shares. Each depository share represents a one thousandth interest in a share of its newly designated 7.00 percent resettable fixed rate perpetual non-cumulative preference shares, series A.
The preference shares have a liquidation preference of $25,000 per preference share, equivalent to $25 per depositary share, or $150 million in aggregate liquidation preference. They have no fixed maturity date, and Argo may redeem all or a portion of the shares at a redemption price of $25,000 per preference share, equivalent to $25 per depositary share, on or after September 15, 2025.
Argo may also redeem shares prior to September 15, 2025 in certain other circumstances at applicable redemption prices. It intends to list the depositary shares on the New York Stock Exchange.
The proceeds will be used to repay its term loan, which has $125 million principal remaining outstanding, and for working capital to support continued growth in Argo’s insurance operations.
The underwriters offered the depositary shares to the public at a public offering price of $25 per share.
The offering was made pursuant to an effective shelf registration statement and is expected to close on July 9, subject to the satisfaction of customary closing conditions.
Argo Group, Depository shares