Max Re initiates 11 million share offer to raise capital

Max Re Capital Ltd. (Nasdaq: MXRE) recently entered into the capital markets intending to raise money after the losses caused by Hurricanes Katrina and Rita.
Max Re plans to sell 11,000,000 of its common shares in an underwritten public offering at a price to the public of $23.50 per share. In addition, Max has granted the underwriters of the offering an option to purchase up to 1,650,000 additional common shares.
If Max’s shares are traded at the anticipated $24, net proceeds are expected to be approximately $246 million. If the underwriters initiate their right to purchase shares, the aggregate amount will reach $258.5 million.
Banc of America Securities LLC and Citigroup Corporate and Investment Banking are acting as joint book-running managers for the offering.