Axis seeks capital boost through preferred share sale.Axis Capital Holdings Ltd. said it would sell $250 million of preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. in a bid to firm up the capital position of its property/casualty insurance and 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. operations. In announcing the sale, the Bermuda-based company further clarified one of two capital-raising efforts announced a week earlier. At that time, Axis said it would sell 6.8 million shares of common stock, worth nearly $200 million, in a block trade with Citigroup Corporate and Investment Banking. Axis had said it also would sell about $200 million in preferred shares when market conditions warranted. The $250 million of preferred shares Axis now says it will sell are 7.50% Series B shares with a liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy preference of $100 a share. Axis said it may redeem the shares on or after Dec. 1, 2015. Axis said in a statement that it would use net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). for general corporate purposes, "primarily to enhance the funding of its insurance and reinsurance segments." |
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