W. R. Berkley Corporation Announces Pricing of $400 Million of 3.550% Senior Notes Due 2052

Rhea-AI Summary

W. R. Berkley Corporation (NYSE: WRB) has priced a $400 million offering of 3.550% Senior Notes due 2052. This issuance is set to close on March 16, 2021, pending customary conditions. The proceeds will primarily be utilized to repay $76.5 million of 8.700% Senior Notes due 2022 and assist in settling $350 million of 4.625% Senior Notes due 2022. Major underwriters include BofA Securities, Credit Suisse, J.P. Morgan, and Morgan Stanley. A registration statement for the Notes has been filed with the SEC.

Positive

• Issuance of new Senior Notes may improve financial flexibility.
• Refinancing high-interest debt, reducing interest expenses long-term.

Negative

• Dependence on debt financing may raise financial risk.
• Potential market volatility impacting future bond pricing.

W. R. Berkley Corporation (NYSE: WRB) (the “Company”) announced today that it priced an offering of $400 million aggregate principal amount of 3.550% Senior Notes due 2052 (the “Notes”). The offering is expected to close on March 16, 2021, subject to customary closing conditions. The net proceeds of the offering will be used to repay at maturity the $76.5 million aggregate principal amount of the Company’s 8.700% Senior Notes due 2022 and towards the $350 million aggregate principal amount of the Company’s 4.625% Senior Notes due 2022.

BofA Securities, Credit Suisse, J.P. Morgan and Morgan Stanley are joint book-running managers of the offering.

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

The offering of the Notes 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 BofA Securities, Inc., toll-free at 1-800-294-1322 or dg.prospectus_requests@bofa.com, Credit Suisse Securities (USA) LLC, toll-free at 1-800-221-1037, J.P. Morgan Securities LLC, collect at 1-212-834-4533, or Morgan Stanley & Co. LLC, toll-free at 1-866-718-1649 or prospectus@morganstanley.com. Alternatively, you may obtain these documents for free by visiting EDGAR on the SEC Web site 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 amount of Senior Notes issued by W. R. Berkley Corporation (WRB)?

W. R. Berkley Corporation has issued $400 million of 3.550% Senior Notes due 2052.

When will the Senior Notes offering for WRB close?

The offering of Senior Notes is expected to close on March 16, 2021.

What will the proceeds from the WRB Senior Notes be used for?

The proceeds will be used to repay $76.5 million of 8.700% Senior Notes due 2022 and part of $350 million of 4.625% Senior Notes due 2022.

Who are the underwriters for WRB's Senior Notes offering?

The underwriters include BofA Securities, Credit Suisse, J.P. Morgan, and Morgan Stanley.