Reinsurance News

Enstar raises $500m in subordinated debt issuance

13th January 2022 - Author: Katie Baker

A subsidiary of legacy specialist, Enstar Group Limited, has raised $500 million through the offering of Fixed-Rate Reset Junior Subordinated Notes.

enstarEnstar Finance LLC priced $500 million aggregate principal amount of 5.500% Fixed-Rate Reset Junior Subordinated Notes due 2042, fully and unconditionally guaranteed, on a junior subordinated basis, by its parent.

The run-off firm intends to use the net proceeds from the offering to pay off the $280.4 million of outstanding 4.500% Senior Notes which are due 2022. These notes also mature on March 10th, 2022.

Any remaining funds received from the offering will be used to grow its business activities, including acquisitions, working capital, and other business opportunities.

The offering is expected to close on January 14th, subject to satisfaction of customary closing conditions.

Barclays, BMO, HSBC, and Wells Fargo have acted as joint book-running managers for the offering.

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