Insurer WR Berkley Comes a Calling

As Eugene noted in the Reader Initiated Alerts my old friend WR Berkley (WRB) is finally stepping up and doing a partial call on the WRB-B 5.625% Jr Subordinated Debentures which have been callable since 5/2018.

Shares tumbled the last 3 days from the $25.80 area to $25.39 now–obviously someone had this info early.

The company will fund the partial redemption with further issuance of 4% Senior Notes.

The info is in the prospectus here.

I have owned this issue many times over the years–but not lately.

3 thoughts on “Insurer WR Berkley Comes a Calling”

  1. Based on SEC filings reported on 9-2-20 on WRB’s website, they are selling the $170 Million of 4 percent notes at a premium of 17 percent over par resulting in approx $197 Million net to the corporation. It looks like this may give Berkley enough cash to redeem about 56 percent of the WRB-B issue.

  2. I own 50 shares of WRB.PRB, cost basis is $24.28 I will be sad to see these go!

  3. I have been in and out of this for a couple years. Currently have a full position at par and will be sad to lose some of these shares. I usually sold at/over 25.70 and waited for pull backs to buy back in. But I was greedy with my current limit-order to sell.

    from the prospectus –
    “We intend to use the net proceeds for the partial redemption of our $350 million aggregate principal amount of 5.625% Subordinated Debentures due 2053.”

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