Assured Guaranty Ltd. Makes Debut on NYSE, Raises $840.1 Million

Strategic Insights -

Assured Guaranty Ltd., a financial guarantee business, successfully debuted on the New York Stock Exchange on Friday after pricing its initial public offering (IPO) at $18 per share. The company, a former unit of Bermudian insurer Ace Ltd., raised $840.1 million in net proceeds from the offering, with the potential to reach $966.1 million if underwriters fully exercise their over-allotment option.

Key Takeaways:

  • Assured Guaranty Ltd. made its debut on the New York Stock Exchange on Friday, priced at $18 per share, with a market capitalization of $1.37 billion.
  • The company raised $840.1 million in net proceeds from the IPO, with the potential to reach $966.1 million if underwriters fully exercise their over-allotment option.
  • Lead underwriters Banc of America Securities LLC, Goldman, Sachs & Co., and Citigroup Inc. priced the 49 million shares at the bottom of the previously announced $18 to $20 million price range.
  • ACE will receive 35% of the company following the IPO, which will fall to 25% if the over-allotment option is exercised in full.
  • The IPO involved a group of underwriters, including Deutsche Bank Securities, J.P. Morgan, Merrill Lynch & Co., UBS Investment Bank, Wachovia Securities, William Blair & Co., and Keefe, Bruyette & Woods.
  • Edward S. Best at Mayer Brown, Rowe & Maw LLP served as the lawyer for the issuer, while Michael Groll at LeBoeuf, Lamb, Greene & MacRae, L.L.P. advised the underwriters.

Statistics:

  • $840.1 million: Net proceeds from the IPO.
  • $966.1 million: Potential net proceeds from the IPO if underwriters fully exercise their over-allotment option.
  • 49 million: Number of shares priced in the IPO.
  • 35%: ACE's ownership stake in Assured Guaranty Ltd. following the IPO.
  • 25%: ACE's ownership stake in Assured Guaranty Ltd. if the over-allotment option is exercised in full.

Sources:

  • Assured Guaranty Ltd.
  • Bermudian insurer Ace Ltd.
  • 180 Connect Inc.
  • BMO Nesbitt Burns Inc.
  • GMP Securities Ltd.
  • Research Capital Corp.
  • National Bank Financial
  • Nanosys Inc.
  • Securities and Exchange Commission (SEC)