© Reuters.
HAMILTON, Bermuda – SiriusPoint Ltd. (NYSE:SPNT), a global insurance and reinsurance company, announced its intention to issue senior unsecured notes in a public offering, subject to market conditions. The company aims to use the proceeds, along with available cash, to fund the purchase of its outstanding 4.600% Senior Notes due in 2026 and for general corporate purposes, which may include debt repayment.
This move is part of SiriusPoint’s broader strategy to optimize its capital structure and reduce debt leverage. Scott Egan, CEO of SiriusPoint, highlighted the company’s performance in 2023, noting a record net income of $339 million to common shareholders and a 16.2% annualized return on equity. He emphasized that these financial maneuvers are designed to strengthen the company’s balance sheet further.
The company also commenced a cash tender offer for any and all of the $400 million aggregate principal amount of its 2026 Notes, alongside a consent solicitation from the holders of these notes. The goal is to amend the indenture governing the 2026 Notes to reduce the minimum notice period for redemption from 30 days to three business days. The tender offer and consent solicitation are detailed in an Offer to Purchase statement dated March 21, 2024.
In addition, SiriusPoint plans to redeem all of its 7.00% Senior Notes due in 2025, with a total principal amount of $115 million, on April 22, 2024. The redemption price will be the greater of 100% of the principal amount or the sum of the present values of the remaining scheduled payments, plus accrued interest.
Joint book-running managers for the debt offering include BMO Capital Markets Corp., HSBC Securities (USA) Inc., Jefferies LLC, and J.P. Morgan Securities LLC. The offering is made through a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC).
SiriusPoint has made it clear that this press release is not an offer to sell or a solicitation of an offer to buy any securities, and the tender offer and consent solicitation are made solely on the terms set forth in the Offer to Purchase. The company has stressed that forward-looking statements in the press release are not guarantees of future events and that actual events may differ materially.
This article is based on a press release statement from SiriusPoint Ltd.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.