A.M. Best Assigns Initial Rating to Everest Re's Trust Preferred Securities.Business & Insurance Editors OLDWICK, N.J.--(BUSINESS WIRE)--Nov. 18, 2002 A.M. Best Co. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. an initial debt rating of "a-" on $200 million in trust preferred securities issued by Everest Re Capital Trust and guaranteed by Everest Re Holdings, Inc. The company issued eight million shares of these 7.85% trust preferred securities for $25 per share with a scheduled maturity date of November 15, 2032. These securities have been issued under Everest Re Group, Ltd.'s (Bermuda) (NYSE NYSE See: New York Stock Exchange :RE) $475 million shelf registration declared effective by the SEC in October 2002. Authorization The right or permission to use a system resource; the process of granting access. See access control. remains for an additional $275 million under this existing shelf registration, to which A.M. Best assigned indicative ratings on October 10, 2002. Under this current issue, the underwriters have the option of exercising an additional $25 million of these securities. This would reduce the amount available under the shelf registration to $250 million. The group's current debt and financial strength ratings are not affected by this action. Everest Re will use the proceeds from this transaction for general corporate purposes, which may include capital contributions to the group's U.S. operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . The following debt rating has been assigned: Everest Re Capital Trust (guaranteed by Everest Re Holdings, Inc.)-- --"a-" on $200 million 7.85% trust preferred securities, due November 15, 2032 The following indicative ratings remain unchanged for the $275 million debt securities still available under the existing shelf registration: Everest Re Group, Ltd.-- --"a" on senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. --"a-" on subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". --"bbb+" on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. Everest Re Holdings, Inc.-- --"a" on senior unsecured debt --"a-" on subordinated debt The following debt ratings remain unchanged: Everest Re Holdings, Inc.-- --"a" on $250 million 8.50% senior notes, due March 15, 2005 --"a" on $200 million 8.75% senior notes, due March 15, 2010 The financial strength ratings of A+ (Superior) remain unchanged for the following core operating reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. and insurance subsidiaries of Everest Re Group, Ltd.: -- Everest Reinsurance Company -- Everest National Insurance Company -- Everest Security Insurance Company -- Everest Indemnity Insurance Company -- Everest Reinsurance (Bermuda), Ltd. -- Everest Insurance Company of Canada A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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