Montpelier Re raises $100 million

Montpelier Re Holdings Ltd. (NYSE: MRH) recently raised $100 million through a private sale of trust preferred securities.
The trust preferred securities were issued by Montpelier Capital Trust III a newly formed statutory trust that is wholly-owned by the Company.
The securities have a fixed rate of interest equal to 8.55% per annum through March 30, 2011, and thereafter a floating interest rate of 3-month LIBOR plus 380 basis points, reset quarterly.
Maturing on March 30, 2036, the securities may be called at par by the Company at any time after March 30, 2011.
According to chairman and chief executive Anthony Taylor, Montpelier’s total capital has risen to over $1.4 billion and the Company is underwriting in respect of approximately $1.7 billion in total capital when Blue Ocean and Rockridge are included.
“I believe that we are well positioned to capitalize on the favorable opportunities we expect to see in our core business lines during 2006,” Taylor says.
The trust preferred securities will and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.