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Assurant announces pricing of mandatory convertible preferred stock

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Assurant announces pricing of mandatory convertible preferred stock

Assurant Inc. announced the pricing of a public offering of 2.5 million, or $250 million aggregate liquidation preference, of its 6.50% series D mandatory convertible preferred stock at a public offering price of $100.00 per share.

The underwriters of the offering have a 30-day option to purchase up to an additional 375,000 shares, or $37.5 million aggregate liquidation preference, of the preferred stock, solely to cover overallotments.

The offering is subject to customary closing conditions, and is expected to close March 12.

Net proceeds from the offering are expected be approximately $240.6 million, or $276.7 million if the underwriters exercise their overallotment option in full, after deducting the underwriting discounts and the estimated offering expenses payable by the company.

Assurant intends to use the net proceeds from the offering together with proceeds from the issuance of new debt, cash on hand and common stock consideration, to fund its planned acquisition of TWG Holdings Ltd., refinance its existing 2.50% senior notes due 2018 and pay related fees and expenses.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are acting as joint book-running managers for the offering.

Unless converted earlier, each preferred share will convert automatically on March 15, 2021, into between 0.9354 and 1.1225 shares of Assurant's common stock, subject to customary anti-dilution adjustments.

Dividends on the preferred stock will be payable on a cumulative basis at an annual rate of 6.50% on the liquidation preference of $100.00 per share. The dividends will be paid in cash, in shares of Assurant's common stock or, in a combination of cash and shares on March 15, June 15, Sept. 15 and Dec. 15 of each year, commencing June 15, and continuing to, and including, March 15, 2021.