Arch Capital Group plans to offer $950 million of senior notes, using the proceeds to fund a portion of its acquisition of United Guaranty Corp. and AIG United Guaranty Insurance (Asia) Ltd. from American International Group.
Arch will offer two sets of notes, the company described in a news release Tuesday. The offering is expected to close Dec. 8.
The first offering has an aggregate principal amount of $500 million in the form of 4.011% senior notes due 2026. The second offering totals $450 million in principal and will feature senior notes carrying a 5.031% coupon due 2046.
The debt offering's closing will not be contingent on the closing of the United Guaranty deal, Arch said. In addition to paying for a portion of the cash consideration of the acquisition, the debt offering will also pay related costs and expenses and for Arch's anticipated growth in its mortgage and other business lines.
In late September, Arch planned a $450 million secondary public stock offering to raise funds for the United Guaranty deal.