LONDON--(BUSINESS WIRE)--AM Best has assigned a Long-Term Issue Credit Rating of “bb+” to the USD 250 million 5.625% perpetual non-cumulative preference shares issued by Aspen Insurance Holdings Limited (Aspen) (Bermuda). The outlook assigned to this Credit Rating (rating) is stable, which is in line with the outlook of Aspen’s Long-Term Issuer Credit Rating (Long-Term ICR).
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.
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