WR Berkley Announces New Baby Bond

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.

11 thoughts on “WR Berkley Announces New Baby Bond”

  1. 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.

    1. 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?

      1. 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.

    1. 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.

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