Press Release - AUGUST 13, 2019
AM Best Assigns Issue Credit Rating to Aspen Insurance Holdings Limited’s Perpetual Non-Cumulative Preference Shares
FOR IMMEDIATE RELEASE
LONDON - AUGUST 13, 2019
The preference shares were issued by Aspen on 6 August 2019 and have a liquidation preference of USD 25,000 per share. Holders of the preference shares will be entitled to receive, only when, as and if declared by Aspen’s board of directors, non-cumulative cash dividends from and including the original issue date, quarterly in arrears on 1 January, 1 April, 1 July and 1 October of each year, commencing on 1 October 2019, in an amount per share equal to 5.625% of the liquidation preference per annum (equivalent to USD 351.56 per preference share for a full dividend period).
Aspen intends to use the net proceeds of this issue to fund the redemption of its USD 125 million 6.00% senior notes maturing in December 2020 and for general corporate purposes. Aspen’s financial ratios are expected to remain within tolerance for its rating. The rating of the preference shares is two notches below Aspen’s Long-Term ICR of “bbb”, reflecting their contractual subordination to the company’s senior debt and subordinated debt.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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