HCC Insurance Holdings Inc. announced it has raised $150 million with a stock sale to fund acquisitions and bulk up its reserves.
The Houston-based company said it closed a block sale of 4,687,500 common stock shares to Citigroup Corporate and Investment Banking as sole book-running manager.
HCC said it has granted Citigroup an overallotment option to purchase an additional 703,125 shares.
Stephen L. Way, HCC chairman and chief executive officer, said the cash would "help fund the pending acquisitions of Perico and MIC Life Insurance Company, the increased rating agency capital requirements for catastrophe-related business, and the recently announced expansion of our international underwriting operations."
"Unlike most of the recent capital raises, ours is for opportunity, not balance sheet repair, and we are well positioned to move ahead," he added.
In addition to this capital, HCC said it has an existing $200 million bank line of credit that is available for any additional financing needs. Following the closing of its latest equity offering, the company said its debt to total capital ratio is approximately 16 percent, and shareholders equity is approximately $1.65 billion.
HCC is an international insurance holding company and specialty insurance group. The firm said assets exceed $6.6 billion.
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