Re-Insurance

Third Point Re prices secondary offering

  • Third Point Re: announced secondary offering of 15 million shares being sold by a major shareholder

Third Point Reinsurance Ltd has announced a secondary public offering of 14 per cent of the Bermudian company’s outstanding shares.

The offering involves 15 million shares being sold by major shareholders KIA TP Holdings and KEP TP Holdings, managed by New York private-equity firm Kelso & Co.

Kelso owns 25 million shares of Third Point Re — amounting to a 23.3 per cent stake in the company. After the share sale, the stake will fall to 9.3 per cent.

The offering was announced on Monday night and today shares fell almost 5.4 per cent to $15.90. After trading closed, the offering was priced at $15.75.

The reinsurer’s investments are managed by Dan Loeb’s hedge fund firm Third Point LLC and its shares are up 37 per cent year to date.

Third Point Re said JP Morgan Securities LLC is the sole underwriter of the offering and has the option to buy an additional 2.25 million shares from the selling shareholders for 30 days after the offering.

The reinsurer said it would not receive any proceeds from the sale of shares being sold in this offering.

The company has filed a registration statement, including a prospectus, with the US Securities and Exchange Commission.