Assurant, Inc. has revealed that it will use the US $276.7 million net proceeds from its recent sale of mandatory convertible preferred stock, in tandem with other capital sources, to finance its $2.5 billion acquisition of TWG Holding, Ltd., which was announced in October 2017.
Assurant recently closed its 6.50% Series D Mandatory Convertible Stock offering, which consisted of 2,875,000 shares, or $287.5 million aggregate liquidation preference, par value $1.00 per share at a public offering price of $100.00 per share.
After deducting underwriting discounts and the estimated offering expenses, Assurant’s net proceeds totalled approximately $276.7 million, which, in addition to funding the TWG acquisition, will be used to refinance its existing 2.50% Senior Notes, which are due in 2018, and pay related fees and expenses.
The stock proceeds will supplement the other acquisition payment options available to Assurant, which include proceeds from the issuance of new indebtedness, cash on hand, and common stock consideration.
If for any reason the acquisition of TWG Holdings is not consummated, Assurant can redeem the mandatory convertible preferred stock, or allocate the proceeds entirely to refinancing the 2018 Senior Notes and to general corporate purposes.
