ACE Limited (NYSE: ACL) announced today that it priced a public offering of 300,000 shares of 9.7% Capital Securities of ACE Capital Trust II, an indirect subsidiary of ACE Limited, at $998.35 per Capital Security.
Each Capital Security will pay cumulative cash distributions at the annual rate of 9.7% of the stated liquidation amount of $1,000 per security, payable semiannually beginning October 1, 2000. The maturity date of the Capital Securities is April 1, 2030 and may not be extended. The Capital Securities are not convertible into any other equity securities.
The net proceeds from this offering, estimated to be approximately $296 million, will be used to repay commercial paper at ACE INA Holdings, Inc. Such commercial paper represents a portion of the interim financing obtained in connection with ACE Limited's July 1999 acquisition of ACE INA Holdings, Inc., formerly the domestic and international property and casualty businesses of CIGNA Corporation.
The Capital Securities are expected to be rated BBB by Standard & Poor's rating services and "a2" by Moody's Investors Service.
The offering was underwritten by a syndicate lead-managed by Merrill Lynch & Co. and co-managed by Chase Securities, Inc., Solomon Smith Barney Inc., First Union Securities, Inc., Banc of America Securities, LLC, Morgan Stanley Dean Witter and S.G. Cowen Securities Corporation.
The ACE Group of Companies provides insurance and reinsurance for a diverse group of clients. The ACE Group conducts its business on a global basis with operating subsidiaries in nearly 50 countries. Additional information can be found at www.acelimited.com .