Insurer WR Berkley (WRB) has announced a new issuance of baby bonds.
The company which had sold a 4% $1,000 senior note issue around 9/1/2020 with proceeds going to a partial redemption of baby bond 5.625% (WRB-B) will be using some of the proceeds of the new baby bond to call the remainder of the WRB-B issue.
The new issue will be investment grade so look for a coupon in the mid 4’s.
The preliminary prospectus can be seen here.
j was on top of this new issue.
https://ir.berkley.com/news-and-events/news/news-details/2020/W.-R.-Berkley-Corporation-Announces-Pricing-of-250-Million-of-4.25-Subordinated-Debentures-Due-2060/default.aspx
From the looks of this press release, this new issue WRB-G will enable WRB
to completely retire WRB-B and that is their intention.
To put this in perspective, just 2 weeks ago WRB issued SENIOR notes to yield 3.1%. You’re being paid an extra 100bps for the subordination.
Issue ticketed @ 1PM EDT.
Poof
Although there is a wait list.
Priced @ 4.25
Even at 4.25% the new issue will have the best YTC of all the WRB issues.
Anyone know if WRB-B shares have been segregated?
The shares have not been called yet. There intention is to do a full call, so they won’t be segregated like a partial would be.
Scratch that ff the idea list.
Price talk around 4.25 to 4.375
Thanks Razor–I was thinking (maybe hoping) 4.50 to 4.625.
Tim,
You are welcome. This price talk was about 9AM CDT. Hope it doesn’t move any lower.
How do I purchase this, if I wanted to? Do I need to go thru a broker?
Hi a. hay–yes you will need to go through your broker. It should price today–i.e. the coupon will be negotiated with the underwriters. Then in about a week it will begin to trade on the NYSE at which time it can be bought.
Alternatively the bond will be assigned an identifying number (CUSIP) today and one can call their broker with the CUSIP if purchase before exchange trading is wanted.