Preferred Stock Offerings
By Preferred Stock Channel Staff, updated Sunday, April 20, 11:10 AM
Slide #365. AmTrust Financial Services, Inc. — Preferred Stock Offering
| Company: |
AmTrust Financial Services, Inc. (AFSI) |
| Date announced: |
3/8/2016 |
| Shares Offered: |
5,000,000 |
| Date of Pricing: |
3/8/2016 |
| Price Per Share: |
$25.00 |
| Preferred Stock Offering Details: |
AmTrust Financial Services, Inc. (Nasdaq:AFSI) (the "Company" or "AmTrust") today announced that it priced on March 8, 2016 an underwritten public offering of 5.0 million of its depositary shares (the "Depositary Shares"), each representing a 1/40th interest in a share of its 7.75% Non-Cumulative Preferred Stock, Series E (the "Preferred Stock"), with a liquidation preference of $1,000.00 per share (equivalent to $25.00 per Depositary Share), or $125.0 million in aggregate liquidation preference. The offering price per Depositary Share is $25.00, for aggregate gross proceeds of $125.0 million. The Company has granted the underwriters a 30-day option, expiring on April 7, 2016, to purchase up to an additional 750,000 Depositary Shares from the Company on the same terms and conditions. Each Depositary Share entitles the holder to a proportional fractional interest in all rights and preferences of the Preferred Stock represented thereby (including any dividend, liquidation, redemption and voting rights). The Company expects the offering to close on March 15, 2016, subject to customary closing conditions. Dividends on the Preferred Stock represented by the Depositary Shares will be payable on the liquidation preference amount, on a non-cumulative basis, when, as and if declared by the board of directors of the Company, at a rate of 7.75% per annum, quarterly in arrears, on March 15, June 15, September 15 and December 15 of each year, beginning on June 15, 2016, from and including the date of original issuance. The Preferred Stock represented by the Depositary Shares is not redeemable prior to March 15, 2021. After that date, the Company may redeem, for cash, at its option, in whole or in part, the Preferred Stock represented by the Depositary Shares at a redemption price of $1,000.00 per share (equivalent to $25.00 per Depositary Share) plus any declared and unpaid dividends for prior dividend periods and accrued but unpaid dividends (whether or not declared) for the then current dividend period. The Company intends to apply to list the Depositary Shares for trading on the New York Stock Exchange. The Company expects to use the net proceeds from the offering for general corporate purposes, which may include working capital, capital expenditures and/or strategic acquisitions. |
AmTrust Financial Services, through its subsidiaries, underwrites and provides property and casualty insurance products to several customer groups that are underserved within the insurance market. Co. operating segments are: Small Commercial Business, which provides workers' compensation insurance; Specialty Risk and Extended Warranty, which provides custom designed coverages, such as accidental damage plans, mechanical breakdown protection and payment protection plans; and Specialty Program, which provides workers' compensation, general liability, commercial auto liability, property coverage, excess and surplus lines programs and other specialty commercial property and casualty insurance.
Preferreds: AFSIA, AFSIB, AFSIC, AFSIP, AFSIM, AFSIN
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