W. R. Berkley Corporation Announces Pricing of $300 Million of 4.125% Subordinated Debentures Due 2061

Rhea-AI Summary

W. R. Berkley Corporation (NYSE: WRB) priced an offering of $300 million in 4.125% Subordinated Debentures due 2061. The offering is set to close on February 10, 2021. The Company plans to use the proceeds to redeem $110 million of its 5.900% Subordinated Debentures due 2056 and for general corporate purposes. The Debentures will be listed on the New York Stock Exchange under the symbol 'WRB PR H', pending approval. Major underwriters include Morgan Stanley and BofA Securities.

Positive

• Successful pricing of $300 million in Subordinated Debentures enhances financial flexibility.
• Proceeds will be used to redeem higher interest debt, potentially reducing interest expenses.

Negative

• None.

W. R. Berkley Corporation (NYSE: WRB) (the “Company”) announced today that it priced an offering of $300 million aggregate principal amount of 4.125% Subordinated Debentures due 2061 (the “Debentures”). The offering is expected to close on February 10, 2021, subject to customary closing conditions. The Company intends to apply to list the Debentures on the New York Stock Exchange under the symbol “WRB PR H.” If approved for listing, the Company expects trading of the Debentures on the New York Stock Exchange to commence within 30 days after they are first issued. The net proceeds of the offering will be used to redeem the $110 million aggregate principal amount of its 5.900% Subordinated Debentures due 2056, with the remaining balance for general corporate purposes, including the potential repayment of indebtedness.

Morgan Stanley, BofA Securities, UBS Investment Bank and Wells Fargo Securities are joint book-running managers of the offering.

A shelf registration statement relating to the Debentures has been filed with the Securities and Exchange Commission (“SEC”) and has become effective. This announcement is not an offer to sell the Debentures, and it is not soliciting an offer to buy the Debentures in any jurisdiction where the offer or sale is not permitted.

The offering of the Debentures will be made only by means of a prospectus supplement and accompanying prospectus. Copies of the preliminary prospectus supplement, final prospectus (when available) and the accompanying prospectus may be obtained by contacting Morgan Stanley & Co. LLC, toll-free at 1-866-718-1649 or prospectus@morganstanley.com, BofA Securities, Inc., toll-free at 1-800-294-1322 or dg.prospectus_requests@bofa.com, UBS Securities LLC toll-free at 1-888-827-7275, or Wells Fargo Securities, LLC toll-free at 1-800-645-3751 or wfscustomerservice@wellsfargo.com. Alternatively, you may obtain these documents for free by visiting EDGAR on the SEC website at http://www.sec.gov.

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty insurance business: Insurance and Reinsurance & Monoline Excess.

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FAQ

What is the purpose of W. R. Berkley Corporation's $300 million Debenture offering?

The offering aims to redeem $110 million of its 5.900% Subordinated Debentures due 2056 and for general corporate purposes.

When will the offering of W. R. Berkley Corporation's Debentures close?

The offering is expected to close on February 10, 2021.

What is the interest rate for the new Debentures offered by W. R. Berkley Corporation?

The new Debentures have an interest rate of 4.125%.

What will the listing symbol for W. R. Berkley Corporation's Debentures be?

The Debentures are expected to be listed under the symbol 'WRB PR H' on the New York Stock Exchange.