By Aleesia Forni
Virginia Beach, Oct. 26 – Allied World Assurance Co. Holdings, Ltd. sold $500 million of 4.35% 10-year senior notes (Baa1/BBB+/BBB+) with a spread of 230 basis points over Treasuries, according to a market source.
Pricing was at 99.952 to yield 4.356%.
The notes were issued at the tight end of the Treasuries plus 235 bps area guidance.
Plans for a 30-year tranche of notes were dropped prior to the deal’s launch. That tranche was talked at Treasuries plus 287.5 bps.
Barclays, Credit Suisse Securities, Citigroup Global Markets Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for the repayment at maturity of the company’s $500 million of 7.5% senior notes due Aug. 1, 2016 and for general corporate purposes, which may include the repurchase of outstanding common shares, payment of dividends to shareholders or funding of potential acquisitions.
The notes are guaranteed by Allied World Assurance Co. Holding AG.
The insurance and reinsurance company is based in Bermuda.
Issuer: | Allied World Assurance Co. Holdings Ltd.
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Guarantor: | Allied World Assurance Co. Holding AG
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Amount: | $500 million
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Description: | Senior notes
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Maturity: | Oct. 29, 2045
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Bookrunners: | Barclays, Credit Suisse Securities, Citigroup Global Markets Inc., Wells Fargo Securities LLC
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Coupon: | 4.35%
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Price: | 99.952
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Yield: | 4.356%
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Spread: | Treasuries plus 230 bps
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Trade date: | Oct. 26
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Settlement date: | Oct. 29
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Ratings: | Moody’s: Baa1
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| Standard & Poor’s: BBB+
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| Fitch: BBB+
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Price guidance: | Treasuries plus 235 bps area
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Distribution: | SEC registered
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