Argo prices $150m depositary shares to repay loan and fund growth
Bermuda-based re/insurer Argo Group International has priced an underwritten public offering of 6 million depositary shares, each representing a one thousandth interest in a share of the company's 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. The underwriters offered the Depositary Shares to the public at a public offering price of $25 per share.
Argo intends to use the net proceeds from the offering to repay its term loan, which has $125 million principal remaining outstanding, and for working capital to support growth in its insurance operations.
The preference shares 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 offering is expected to close on July 9, subject to the satisfaction of customary closing conditions.
