ACE Prices $300 Million Capital Securities Offering.Business Editors HAMILTON, Bermuda--(BUSINESS WIRE)--March 30, 2000 ACE Limited (NYSE NYSE See: New York Stock Exchange :ACL See access control list. 1. ACL - Access Control List. 2. ACL - Association for Computational Linguistics. 3. ACL - A Coroutine Language. A Pascal-based implementation of coroutines. ["Coroutines", C.D. ) announced today that it priced a public offering of 300,000 shares of 9.7% Capital Securities of ACE Capital Trust II, an indirect subsidiary of ACE Limited, at $998.35 per Capital Security. Each Capital Security will pay cumulative cash distributions at the annual rate of 9.7% of the stated liquidation amount of $1,000 per security, payable semi-annually beginning October 1, 2000. The maturity date of the Capital Securities is April 1, 2030 and may not be extended. The Capital Securities are not convertible into any other equity securities. The net proceeds from this offering, estimated to be approximately $296 million, will be used to repay commercial paper at ACE INA Ina (ē`nä), city (1990 pop. 60,062), Nagano prefecture, central Honshu, Japan, on the Tenryu River. It is an agricultural and industrial center with a famous agricultural school. Holdings, Inc. Such commercial paper represents a portion of the interim financing obtained in connection with ACE Limited's July 1999 acquisition of ACE INA Holdings, Inc., formerly the domestic and international property and casualty businesses of CIGNA CIGNA CG (Connecticut General Life Insurance Company) INA (Insurance Company of North America) Corporation. The Capital Securities are expected to be rated BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. by Standard & Poor's rating services and "a2" by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. . The offering was underwritten by a syndicate lead-managed by Merrill Lynch & Co. and co-managed by Chase Securities, Inc., Solomon Smith Barney Inc., First Union Securities, Inc., Banc of America Securities, LLC, Morgan Stanley Dean Witter and S.G. Cowen Securities Corporation. The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The ACE Group conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at www.acelimited.com. |
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