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Montpelier Re Holdings Ltd. Announces Pricing of $150 Million Non-Cumulative Perpetual Preferred Share Offering

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  Published in Business and Finance on Tuesday, May 3rd 2011 at 18:40 GMT by Market Wire
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HAMILTON, Bermuda--([ BUSINESS WIRE ])--Montpelier Re Holdings Ltd. (NYSE: MRH), (aMontpeliera or the aCompanya), a provider of short-tail reinsurance and other specialty lines, today announced the pricing of $150.0 million of 8.875% Non-Cumulative Preferred Shares Series A (aPreferred Sharesa), with a liquidation preference of $25.00 per share, and expects to receive the proceeds on May 10, 2011. Except in certain limited circumstances, the Preferred Shares are not redeemable prior to May 10, 2016. After that date, the Company may redeem at its option, in whole or in part, the Preferred Shares at a redemption price of $25.00 per share.

Montpelier intends to list the Preferred Shares on the New York Stock Exchange. The Company also intends to use the net proceeds from the offering for general corporate purposes and, in particular, to support the underwriting activities of its insurance and reinsurance subsidiaries.

This announcement shall not constitute an offer to sell or a solicitation of an offer to buy these securities nor shall there be any offer or sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The Preferred Shares may be offered only by means of a Prospectus Supplement and accompanying base Prospectus. Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as the sole Book-Running Manager for the offering. The offering will be made only by means of a Prospectus and Prospectus Supplement, copies of which may be obtained by contacting Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at 1-800-294-1322 or by visiting EDGAR on the Securities and Exchange Commission website at [ www.sec.gov ].

About Montpelier Re Holdings Ltd.

Montpelier Re, through its operating subsidiaries, is a provider of global property and casualty reinsurance and insurance products. Additional information can be found in the Companya™s public filings with the Securities and Exchange Commission.

This press release may contain "forward-looking" statements within the meaning of the United States federal securities laws, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not historical facts, including statements about our beliefs and expectations. All forward-looking statements are based upon current plans, estimates and projections. Actual results could differ materially from those projected in any forward-looking statements, as a result of certain risk factors disclosed in Forward Looking Statements.