Bermuda domiciled reinsurer RenaissanceRe Holdings Ltd. (RenRe) has announced plans to raise $500 million via a share offering, the proceeds of which it says could be used to replenish its capital base after a catastrophe event.
RenRe has agreed to sell 20 million depositary shares in an underwritten public offering, each of which represents a one thousandth interest in a share of its 4.20% Series G preference shares.
The public offering price is $25 per depositary share for an aggregate public offering price of $500 million, with the sale currently expected to take place on July 12th.
The reinsurer expects to use the proceeds of the offering to redeem all of its outstanding 5.375% Series E preference shares, with any additional proceeds to be used for general corporate purposes.
However, RenRe noted that if a significant catastrophe event occurs before it has redeemed the Series E shares, then the proceeds could be used to replenish its capital base instead.
Wells Fargo Securities, LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are serving as joint book-running managers for the offering.
