Arch Capital Prices New Preferred

Arch Capital (ACGL) has priced their new preferred issue the a coupon of 4.55%.

They are selling 20 million shares. Of course they are non cumulative, but qualified.

The issue is rated BBB by Standard and Poor’s and BBB by Fitch.

The pricing term sheet can be read here.

The issue becomes redeemable on 6/11/2026.

The issue will trade on the OTC grey market immediately under ticker ACGLL.

6 thoughts on “Arch Capital Prices New Preferred”

  1. Anyone know if ACGLN (temp ACGLL) being a ‘foreign company’ has foreign taxes deducted? If so, not a good candidate for your IRA portfolio

    1. Tax withholding is a function of the country of origin. Arch is Bermudian, Bermuda has no income tax and no withholding.

      You brokerage may or may not get it right at the start but will correct it if questioned. Except perhaps Schwab.

      You should absolutely not be charged a foreign transaction fee. Those come properly into play when the security is only traded on a foreign exchange. Arch is SEC register and NASDAQ listed. If you call the broker and push the point they will relent. Again, except Schwab.

      1. Thank you @Bob-in-DE for confirming what I thought about Bermuda Corp no tax witholdings for US taxpayers…

        Did buy some but may flip it if higher as relatively low coupon and faces more downside if rates rise

  2. ACGLL trading in narrow range so far of $24.98-$25.04 with a lot of trades at $25.00.

    Recent JPM-L a recent issue of May with similar coupon surely more sought after and better rated. Had bought that in low $25s and flipping it above $26 was certainly good.

    Buying some of ACGLL at $25 with hope to flip in high $25s.

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