Canadian Underwriter

Kingsway offerings net almost $100 million

December 9, 2002   by Canadian Underwriter

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Specialty insurer Kingsway Financial Services (TSX, NYSE: KFS) has closed two offerings which combined have netted the company almost $100 million in new capital.
The public offering of $78 million in 8.25% unsecured senior debentures netted the company about $77.1 million. Kingsway notes that the debentures are due December 31, 2007 and yield to maturity is 8.298%.
Also, a private placement of about US$15 million in 30-year floating rate trust preferred securities has brought in proceeds of about US$14.5 million (Cdn$22.7 million).
“The net proceeds of both offerings will be used to provide additional capital to Kingsway’s subsidiaries to support the growth of our business and for general corporate purposes, which may include the repayment of existing credit facilities,” states a Kingsway press release.

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