Arch Capital Group Ltd. Announces Cash Exercise of Warrants by Principal Shareholders.Business Editors HAMILTON, Bermuda--(BUSINESS WIRE)--Sept. 24, 2002 Arch Capital Group Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ACGL ACGL Arch Capital Group Ltd. ACGL Automobile Corporation of Goa Limited ACGL Alternative County Government Law ) today announced that its principal shareholders, private equity investment funds affiliated with Warburg Pincus and Hellman & Friedman, and certain other investors exercised for cash the Class A warrants that they purchased as part of the capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. in November 2001. In addition, Robert Clements, Chairman of the Company's Board, exercised for cash 120,000 of his Class A warrants. An aggregate of 3,842,450 common shares were issued upon the exercise of all outstanding Class A warrants, which were exercisable for $20.00 per share and were scheduled to expire on September 19, 2002. Payment of the exercise price for these Class A warrants increased shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. by approximately $74 million. "We are very pleased to increase our commitment to Arch," said Kewsong Lee, a Managing Director of Warburg Pincus. "Over the past year, the Company has achieved tremendous progress in its underwriting initiatives and in expanding its 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 operations. We continue to believe in the Company's long-term growth potential," Mr. Lee said. Added Jack Bunce n. 1. a sudden unexpected piece of good fortune. Noun 1. bunce - a sudden happening that brings good fortune (as a sudden opportunity to make money); "the demand for testing has created a boom for those unregulated laboratories where boxes of , a Managing Director of Hellman & Friedman, "We remain convinced that Arch is well positioned to grow and prosper in this strong insurance and reinsurance marketplace. Our additional investment in the Company illustrates our confidence in the progress and execution of the Company's business plan." Arch Capital Group Ltd., a Bermuda-based company with over $1.3 billion in equity capital, provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. . Cautionary Note Regarding Forward-Looking Statements The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements which reflect the Company's current views with respect to future events and financial performance. Forward-looking statements involve the Company's current assessment of risks and uncertainties, including statements regarding anticipated future financial results and prospects for the insurance and reinsurance markets generally. Actual events and results and prospects for the insurance and reinsurance markets may differ materially from those expressed or implied in these statements. In addition to risks and uncertainties related to the Company's business described in filings by the Company with the Securities Exchange Commission, the items addressed in this release are subject to various risks and uncertainties including, but not limited to, the risks relating to the successful integration of new management personnel into the Company's existing structure and conditions in the insurance and reinsurance markets. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. |
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