XL Capital prices securities offerings at $2.9 billion.XL Capital Ltd. has priced its planned offerings of securities to the tune of $2.9 billion pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern , in a bid to build up its capital base following heavy storm losses and a lost arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the case. The Bermuda-based property/ casualty group priced an offering of 33.8 million ordinary shares at an initial $65 a share, for a total of $2.2 billion. An additional 5. l million shares will be available for the offering underwriters to buy as an option. XL Capital also will sell $745 million of equity security units, valued at $25 a unit. The units consist of forward purchase contracts to buy, and for XL to issue, ordinary shares and debt securities. There will be no over-allotment option related to the equity security units, XL said. Total annual distributions on the equity security units will be 7%, consisting of interest payments at the rate of 5.25% on senior notes and contract adjustment payments of 1.75% under forward purchase contracts. XL said it will 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). lot general corporate purposes. |
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