American Re Corp. closes $237.5 million issue of cumulative quarterly income preferred securities.PRINCETON, NJ, Aug. 31--(BUSINESS WIRE)--American Re Corporation (NYSE-ARN) ("American Re") today announced that its affiliate, American Re Capital, a Delaware business trust, has completed the sale of $237.5 million of Cumulative Quarterly Income Preferred Securities ("QUIPS QUIPS See Quarterly Income Preferred Securities (QUIPS). ") due 2025. The $237.5 million of securities sold include the initial offering of $225 million plus the exercise of a portion of the underwriters over-allotment option. Managing underwriters for the offering are Goldman, Sachs & Co., Lehman Brothers, Merrill Lynch & Co., PaineWebber Incorporated, and Smith Barney Inc. The net proceeds from the sale of the QUIPS have been used by American Re to retire a $150 million revolving credit facility with Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. , N.A. and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , Illinois, as co-agents, and to contribute $50 million to the capital and surplus of American Re s 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. subsidiary, American Re-Insurance Company. The remaining net proceeds, approximately $30 million, will be used for general corporate purposes. Beginning September 5, 1995, the QUIPS will be listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , under the ticker symbol "ARN ARN Access Research Network ARN Advanced Remote Node ARN Acide Ribonucléique (French: RNA) ARN Autoridad Regulatoria Nuclear (Argentina) ARN Association of Rehabilitation Nurses PrA". Paul Inderbitzin, Chairman and Chief Executive Officer of American Re-Insurance Company, said, "We are very pleased with the success of the QUIPS offering. It enables us to continue the disciplined deleveraging of American Re and adds to the long-term financial flexibility of both the holding company and American Re-Insurance Company. This has been reflected in our recent ratings upgrades from both Moody's and Standard & Poor's." American Re, headquartered in Princeton, N.J., through its wholly owned subsidiaries, is a direct writer of treaty and facultative reinsurance and related services, with approximately 1,200 employees in 13 domestic and 15 international offices. CONTACT: James R. Fisher (609) 243-4602 Thomas H. Walker, Jr. (609) 243-4679 |
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