NEW YORK (AFX) - Property and casualty insurer Alleghany Corp. said Friday it closed a public offering of about 1.13 million shares of its mandatory convertible preferred stock due June 15, 2009 at $264.60 per share, resulting in net proceeds of about $290 million.
The mandatory convertible preferred stock has a dividend yield of 5.75 percent, and a conversion premium of 18 percent above public offering price.
The company currently intends to use proceeds from the sale to make contributions to the capital and surplus of its insurance operating units, and for general corporate purposes.
Merrill Lynch & Co. acted as the sole book-running manager and Wachovia Capital Markets, Dowling & Partners Securities and Janney Montgomery Scott LLC acted as co-managers for the preferred stock offering.
Shares of Alleghany closed up 75 cents at $274.75 on the New York Stock Exchange.
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