Shareholders of record will receive one non-transferable right per common share
The board of directors of United America Indemnity, a Cayman Islands-based property and casualty insurer, has approved a $100 million rights offering.
Under the rights offering, the company will distribute to holders of record of the company’s class A common shares on March 16, 2009 (the record date) non-transferable rights to subscribe for class A common shares and to holders of record of the company’s class B common shares on the record date non-transferable rights to subscribe for class B common shares.
Shareholders of record will receive one non-transferable right per common share. The number of common shares each right holder will be entitled to purchase and the subscription price per share will be announced on March 10, 2009. The company’s class A common shares are expected to begin trading ex-rights on March 12, 2009. The class B common shares are not publicly traded.
The company will enter into a backstop commitment agreement with Fox Paine & Company, the company’s largest beneficial shareholder, pursuant to which the backstop provider will agree to purchase any common shares not subscribed for pursuant to the rights offering.
The company intends to use the proceeds from the offering to support its strategic initiatives, enhance liquidity and financial flexibility, and for other general corporate purposes.