ACE Limited (NYSE: ACL) announced today the pricing of a public offering of 4,000,000 shares of 8.875% Trust Originated Preferred Securitiessm (TOPrSsm) of ACE Capital Trust I, an indirect subsidiary of ACE Limited, at $25.00 per TOPrS. ACE Capital Trust I has also granted to the underwriters an option to purchase an additional 600,000 TOPrS to cover over-allotments.
Each TOPrS will pay cumulative cash distributions at the annual rate of 8.875% of the stated liquidation amount of $25 per security, payable quarterly beginning March 31, 2000. The Trust Originated Preferred Securities may be redeemed at $25 per share, plus accrued and unpaid distributions, on or after December 31, 2004. The maturity date of the TOPrS is December 31, 2029, which date may be extended at any time at the election of ACE for one or more periods, but in no event to a date later than December 31, 2048. The TOPrS are not convertible into any other equity securities.
The net proceeds from this offering will be used to repay commercial paper. 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 TOPrS have been rated BBB by Standard & Poor's Rating Services and "a2" by Moody's Investors Service and will be listed on the New York Stock Exchange under the symbol "ACLPrA".
The offering was underwritten by a syndicate lead-managed by Merrill Lynch & Co., PaineWebber Incorporated, Prudential Securities Inc., Salomon Smith Barney Inc., First Union Securities, Inc. and S.G. Cowen Securities Corporation.
Trust Originated Preferred Securities and "TOPrS" are service marks of Merrill Lynch & Co., Inc.
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.