Bermuda domiciled reinsurer RenaissanceRe has announced a $166 per-share pricing for its offering of 5,500,000 common shares, which, along with an option for underwriters to buy an additional 825,000 shares, brings the total equity raise to around $1.125 billion in total.
This figure includes $75 million worth of common stock that 4.4% owner State Farm has agreed to pay.
RenRe intends to use the net proceeds from this offering for general corporate purposes, which may include expanding existing business lines, entering new business lines, forming new joint ventures, or acquiring books of business from other companies.
Despite the challenges faced due to the Covid-19 pandemic, RenRe has stated a belief that a track record of responding to industry events, differentiated risk management and client service capabilities, and access to diverse sources of both capital and risk positions them favorably in the current environment.
RenRe has access to capital in many forms, but this capital raise will see the company expanding its own balance-sheet, which will please its shareholders.
Morgan Stanley and Goldman Sachs are acting as joint book-running managers and representatives of the underwriters for the offering.
