AXIS sells shares for $200 million

AXIS Capital Holdings Ltd [NYSE:AXS] has sold 6.8 million of its common shares at $29.42 per share to Citigroup Corporate and Investment Banking, raising aggregate proceeds of approximately $US200 million.
Citigroup bought the shares from AXIS Capital and subsequently reoffered the common shares to public investors, AXIS announced in a press release.
“AXIS Capital expects to use the proceeds from the sale of its common shares for general corporate purposes, primarily to enhance the funding of its insurance and reinsurance operating subsidies,” the company announced.
In addition, AXIS announced it is offering for sale approximately $200 million in preferred securities. “AXIS Capital expects to use the proceeds for general corporate purposes,” the company announced. “The completion of the common shares offering and any preferred securities offering are not contingent on one another.”
The share and securities offerings come three weeks after AXIS announced third-quarter net losses from Hurricanes Katrina and Rita of $US804.5 million. In comparison, the company noted its net losses for the 2004 third quarter as a result of damages caused by Hurricanes Charley, Frances, Ivan and Jeanne amounted to $227.4 million.
“Our net loss for Hurricane Katrina was $723.6 million,” the company announced. “Our estimated net losses for Hurricane Katrina assume an industry loss of $60 billion.”