Argo Group Moves Towards Full Redemption of Preferred Stocks
Argo Group International Holdings, Inc. Initiates Redemption Plans
Argo Group International Holdings, Inc., a prominent player in the specialty insurance landscape, has announced significant moves regarding its 7.00% Resettable Fixed Rate Preferred Stock and its 6.500% Senior Notes. These actions are pivotal as the company aims to solidify its position and ensure streamlined operations moving forward.
Details of the Redemption
On a forthcoming redemption date, all outstanding shares of Argo's 7.00% Resettable Fixed Rate Preferred Stock, Series A will be redeemed. This encompasses a total of 6,000 outstanding shares, equating to approximately 6,000,000 depositary shares. Additionally, Argo Group US, Inc., a wholly-owned subsidiary, will proceed with the redemption of $143.75 million aggregate principal amount of its Senior Notes, set to mature on September 15, 2042.
Understanding the Redemption Price
The redemption price for the depositary shares will be $25.00 per share, alongside any accrued and unpaid dividends up to the redemption date. It's essential that holders of these shares are aware that no shares will remain outstanding after the redemption, signaling the conclusion of this category of preferred stock investment.
Procedures for Redemption
The redemption process will be managed through The Depository Trust Company (DTC). Equity distributions will occur via the company’s designated redemption agent, Equiniti Trust Company, LLC. Solid communication channels will be maintained for shareholders to address any queries about the redemption process.
Impact on Shareholders
Post-redemption, all rights attached to the Series A Preferred Stock and related depositary shares will terminate, except holders will retain the right to receive the redemption price. Investors should ensure they're informed through their banks or brokers regarding these changes, and how they will affect their portfolio.
Redemption of Senior Notes
Soon after the planned redemption date, all outstanding notes will also be fully redeemed at 100% of their principal, including accrued interest. This financial maneuver is expected to streamline Argo's future financing strategies.
Deregistration and Delisting Plans
In conjunction with these redemptive actions, Argo Group has revealed intentions to delist both the depositary shares and the Senior Notes from the New York Stock Exchange (NYSE). The company will file a necessary notification with the Securities and Exchange Commission (SEC) to effectuate this delisting, along with a certification for deregistration expected to take effect shortly thereafter.
Further Strategies
This strategic decision signifies Argo’s focus on evolving its business model and potentially re-aligning its investments. As a leading insurance underwriter, Argo provides a comprehensive suite of insurance products tailored to various industries. Their proactive measures now indicate a shift toward optimizing their capital structure and focusing on long-term growth.
About Argo Group
Argo Group is known for its commitment to delivering specialized insurance products that address diverse client needs. Operating under the umbrella of Brookfield Wealth Solutions Ltd., Argo has maintained a solid reputation, holding an 'A-' rating from Standard and Poor's, ensuring confidence among its stakeholders. This makes them a trusted name in the property and casualty insurance market.
For further inquiries regarding the redemption process or other concerns, investors can contact David Snowden at 210-321-2104 or via email at david.snowden@argogroupus.com.
Frequently Asked Questions
What prompted Argo Group to redeem its preferred stock?
The decision to redeem preferred stock is part of Argo Group's strategy to optimize its capital structure and streamline its operations.
How will shareholders receive the redemption price?
Shareholders will receive the redemption price through their brokers or banks as the redemptions occur through The Depository Trust Company.
What does the delisting from the NYSE entail for investors?
Delisting means that the shares will no longer be traded on the NYSE. Investors will need to transition their trading activities through alternative channels.
What are the future plans for Argo Group beyond this redemption?
Argo Group aims to focus on long-term growth, potentially exploring new opportunities and re-aligning its investment strategies.
How can investors stay informed about Argo Group's developments?
Investors are encouraged to maintain communication with their brokers for updates or contact the company directly for specific inquiries.
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