OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has assigned a Long-Term Issue Credit Rating of “bb+” to $150 million, 6.70% Series D preference shares recently announced by Maiden Holdings Ltd. (MHLD)(NASDAQ:MHLD) (Hamilton, Bermuda). This Credit Rating (rating) has been assigned a stable outlook.
The proceeds from the issuance of the shares will be used to repay the 8.00% senior notes due 2042 of MHLD’s subsidiary, Maiden Holdings North America, Ltd., and for other corporate purposes. Upon issuance of the shares and redemption of these notes, Maiden’s adjusted debt to total capital ratio will measure 21.1%, within A.M. Best’s guidelines for the rating. While interest coverage for 2016 was below expectations, improvement is anticipated in 2017 and consistently favorable operating cash flows and available liquidity are offsetting considerations.
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