Third Point Reinsurance Prices IPO At $12.50/Share, Lower End Of Range

(RTTNews) - Bermuda based Third Point Reinsurance Ltd. announced that it has priced initial public offering of 22.05 million common shares at $12.50 per share, the low end of the estimated range. The offering is expected to close on August 20, 2013.

In an amended regulatory filing with the U.S. Securities and Exchange Commission, the company had expected to price the initial public offering of 22.22 million common shares between $12.50 and $14.50 per share.

The company said that its shares to begin trading on August 15, on the New York Stock Exchange under the ticker symbol "TPRE."

Of the 22.05 million shares being offered, 21.52 million common shares are being offered by Third Point Reinsurance and 529 thousand shares are being offered by certain selling shareholders.

The underwriters may purchase up to 3.31 million additional shares from Third Point Reinsurance at the initial offering price, less underwriting discounts and commissions, to cover over-allotments, if any. The reinsurance arm of Third Point, the hedge fund run by Daniel S. Loeb expects to receive proceeds, net of underwriting discounts and commissions, of approximately $252.2 million from the offering.

Third Point Reinsurance intends to use offering proceeds for general corporate purposes and added that it will not receive any proceeds from the sale of shares by the selling shareholders.

The book-running managers for the offering are J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch and Citigroup Global Markets Inc. Aon Benfield Securities, Inc., Dowling & Partners Securities LLC, Keefe, Bruyette & Woods, Inc., Macquarie Capital (USA) Inc. and Sandler O'Neill + Partners, L.P. are acting as co-managers for the offering.