ACE Unit Plans To Sell $500M Of Senior Notes
NU Online News Service, June 3, 9:45 a.m. EDT?Bermuda-based insurer ACE Ltd. said yesterday that its subsidiary ACE INA Holdings intends to sell up to $500 million of 10-year senior notes, subject to market conditions.[@@]
The new notes will be backed by ACE Ltd., and the proceeds from the sale are expected to fund the repayment of $400 million of previous ACE INA Holdings notes which will mature this August and also redeem $75 million of subsidiary trust preferred securities. ACE will also use some of the proceeds for general corporate purposes.
The lead underwriters for the proposed offering are New York-based financial investment firms Citigroup Global Markets Inc. and J.P. Morgan Securities Inc., ACE said.
ACE Ltd. sells p-c insurance and reinsurance in the United States and about 50 other countries through its subsidiaries. In April, ACE reported $447 million in net profit for its 2004 first quarter, an 81 percent rise from $247 million in income reported during the corresponding period in 2003.
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