Assured Guaranty plans $550M offer of stock, units (AP)
Tue, 16 Jun 2009 11:20:09 Etc/GM
The Bermuda-based insurer plans to sell $400 million in common shares. Based on Monday's closing price of $14.15, the company would sell about 28.3 million shares of stock.
Underwriters will have a 30-day option to purchase up to an additional $60 million in common stock as part of the offering.
Assured Guaranty also will sell 3 million equity units at a price of $50 per unit. The units will consist of a forward purchase contract to eventually buy common shares and a 5 percent stake in a senior note due in 2014.
Underwriters will have a 13-day option to purchase an additional $22.5 million in equity units.
Assured Guaranty plans to use the money raised from the offering to help cover the cash portion of its purchase of bond insurer Financial Security Assurance Holdings Ltd. and to help reduce the number of shares deliverable as part of the deal.
source: http://biz.yahoo.com/ap/090616/us_assured_guaranty_stock_offer.html?.v=1