Enstar Group Limited Announces Pricing of $350 Million of 7.500% Fixed-Rate Reset Junior Subordinated Notes Due 2045
Enstar Group (NASDAQ: ESGR) has announced the pricing of $350 million aggregate principal amount of 7.500% Fixed-Rate Reset Junior Subordinated Notes due 2045. The offering is expected to close on March 18, 2025.
The company plans to use the net proceeds to fund the purchase of the 5.750% Fixed-Rate Reset Junior Subordinated Notes due 2040, issued by its subsidiary Enstar Finance Any remaining proceeds will be used to redeem additional 2040 Junior Subordinated Notes during future par call periods and for general corporate purposes, including acquisitions, working capital, and other business opportunities.
The Notes will be offered exclusively to qualified institutional buyers under Rule 144A and to certain non-U.S. persons in offshore transactions under Regulation S of the Securities Act.
Enstar Group (NASDAQ: ESGR) ha annunciato il prezzo di 350 milioni di dollari di importo principale aggregato di Note Junior Subordinate a Tasso Fisso Reset del 7,500% con scadenza nel 2045. Si prevede che l'offerta si chiuda il 18 marzo 2025.
L'azienda prevede di utilizzare il ricavato netto per finanziare l'acquisto delle Note Junior Subordinate a Tasso Fisso Reset del 5,750% con scadenza nel 2040, emesse dalla sua controllata Enstar Finance. Eventuali proventi rimanenti saranno utilizzati per riscattare ulteriori Note Junior Subordinate del 2040 durante i futuri periodi di chiamata a valore nominale e per scopi aziendali generali, inclusi acquisizioni, capitale circolante e altre opportunità commerciali.
Le Note saranno offerte esclusivamente a compratori istituzionali qualificati ai sensi della Regola 144A e a determinate persone non statunitensi in transazioni offshore ai sensi della Regolamentazione S del Securities Act.
Enstar Group (NASDAQ: ESGR) ha anunciado el precio de 350 millones de dólares en monto principal agregado de Notas Subordinadas Junior a Tasa Fija Reset del 7.500% con vencimiento en 2045. Se espera que la oferta se cierre el 18 de marzo de 2025.
La compañía planea utilizar los ingresos netos para financiar la compra de las Notas Subordinadas Junior a Tasa Fija Reset del 5.750% con vencimiento en 2040, emitidas por su subsidiaria Enstar Finance. Cualquier ingreso restante se utilizará para redimir Notas Subordinadas Junior adicionales de 2040 durante futuros períodos de llamada a valor nominal y para fines corporativos generales, incluyendo adquisiciones, capital de trabajo y otras oportunidades de negocio.
Las Notas se ofrecerán exclusivamente a compradores institucionales calificados bajo la Regla 144A y a ciertas personas no estadounidenses en transacciones offshore bajo la Regulación S de la Ley de Valores.
엔스타 그룹 (NASDAQ: ESGR)는 3억 5천만 달러의 총 원금 규모의 7.500% 고정 금리 리셋 주니어 후순위 채권, 만기 2045년의 가격을 발표했습니다. 이 제안은 2025년 3월 18일에 마감될 것으로 예상됩니다.
회사는 순수익을 사용하여 자회사인 엔스타 파이낸스가 발행한 5.750% 고정 금리 리셋 주니어 후순위 채권, 만기 2040년을 구매할 계획입니다. 남은 수익은 향후 만기 호출 기간 동안 추가 2040년 주니어 후순위 채권을 상환하는 데 사용되며, 인수, 운영 자본 및 기타 비즈니스 기회를 포함한 일반 기업 목적에도 사용됩니다.
채권은 144A 규정에 따라 자격을 갖춘 기관 투자자에게 독점적으로 제공되며, 증권법의 S 규정에 따라 특정 비미국인에게 해외 거래로 제공됩니다.
Enstar Group (NASDAQ: ESGR) a annoncé le prix de 350 millions de dollars de montant principal agrégé de Notes Subordonnées Junior à Taux Fixe Réinitialisable de 7,500% arrivant à échéance en 2045. La clôture de l'offre est prévue pour le 18 mars 2025.
L'entreprise prévoit d'utiliser le produit net pour financer l'achat des Notes Subordonnées Junior à Taux Fixe Réinitialisable de 5,750% arrivant à échéance en 2040, émises par sa filiale Enstar Finance. Les produits restants seront utilisés pour racheter d'autres Notes Subordonnées Junior de 2040 lors de futures périodes d'appel à la valeur nominale et pour des fins d'entreprise générales, y compris des acquisitions, du fonds de roulement et d'autres opportunités commerciales.
Les Notes seront offertes exclusivement à des acheteurs institutionnels qualifiés conformément à la Règle 144A et à certaines personnes non américaines dans des transactions offshore conformément à la Réglementation S de la Loi sur les Valeurs Mobilières.
Enstar Group (NASDAQ: ESGR) hat die Preisgestaltung von 350 Millionen Dollar an Gesamtnennbetrag von 7,500% festverzinslichen Reset Junior-Subordinated Notes mit Fälligkeit 2045 bekannt gegeben. Es wird erwartet, dass das Angebot am 18. März 2025 abgeschlossen wird.
Das Unternehmen plant, die Nettomittel zur Finanzierung des Kaufs der 5,750% festverzinslichen Reset Junior-Subordinated Notes mit Fälligkeit 2040, die von seiner Tochtergesellschaft Enstar Finance ausgegeben wurden, zu verwenden. Etwaige verbleibende Mittel werden verwendet, um zusätzliche 2040 Junior-Subordinated Notes während zukünftiger Rückzahlungsperioden zu tilgen und für allgemeine Unternehmenszwecke, einschließlich Akquisitionen, Betriebskapital und andere Geschäftsmöglichkeiten.
Die Notes werden ausschließlich an qualifizierte institutionelle Käufer gemäß Regel 144A und an bestimmte Nicht-US-Personen in Offshore-Transaktionen gemäß der Regulierung S des Wertpapiergesetzes angeboten.
- Higher interest rate notes (7.500%) replacing lower rate notes (5.750%), indicating potential for better returns for note holders
- $350 million capital raise strengthens financial position
- Flexibility in use of proceeds for strategic acquisitions and business opportunities
- Higher interest rate of 7.500% increases company's debt servicing costs compared to previous 5.750% notes
- Additional long-term debt obligation through 2045
Insights
Enstar Group's $350 million offering of
This
The junior subordinated classification is particularly relevant for understanding this transaction's impact on Enstar's capital structure. These securities rank above equity but below senior debt in payment priority, which preserves financial flexibility while potentially supporting regulatory capital requirements essential in the insurance industry.
The explicit mention of using remaining proceeds for "acquisitions, working capital and other business opportunities" signals that Enstar may be positioning for growth opportunities within its insurance and reinsurance markets. The company appears willing to accept higher interest costs to maintain liquidity and funding capacity for strategic initiatives.
While interest expenses will increase, the transaction demonstrates proactive liability management and secures longer-term financing in the current interest rate environment. The non-registered nature of the offering ( to qualified institutional buyers under Rule 144A) is standard practice for these securities and doesn't represent any unusual circumstances.
HAMILTON, Bermuda, March 12, 2025 (GLOBE NEWSWIRE) -- Enstar Group Limited (“Enstar”) (Nasdaq: ESGR) today announced the pricing of
Enstar intends to use the net proceeds from the offering to fund the purchase of the
The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. The Notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration provided by Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.
This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act, and it is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Enstar
Enstar is a NASDAQ-listed leading global insurance group that offers innovative capital release solutions through its network of group companies operating in Bermuda, the United States, the United Kingdom, Liechtenstein, Belgium and Australia. A market leader in completing legacy acquisitions, Enstar has acquired over 120 companies and portfolios since its formation.
Cautionary Statement
This press release contains certain forward-looking statements. These statements include statements regarding the intent, belief or current expectations of Enstar and its management team. Investors are cautioned that any such forward-looking statements speak only as of the date they are made, are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. Important risk factors regarding Enstar can be found under the heading "Risk Factors" in Enstar’s Form 10-K for the year ended December 31, 2024 and are incorporated herein by reference. Furthermore, Enstar undertakes no obligation to update any written or oral forward-looking statements or publicly announce any updates or revisions to any of the forward-looking statements contained herein, to reflect any change in its expectations with regard thereto or any change in events, conditions, circumstances or assumptions underlying such statements, except as required by law.
Contact: Enstar Communications
Telephone: +1 (441) 292-3645
Enstar Group Limited
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