Reinsurance Company Maiden Holdings LTD Refinances Some Debt

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Maiden Holdings LTD, a 30 year old reinsurance company, has sold a new issue of preferred stock with a coupon of 6.70%.  The company will use the proceeds to call their 8% baby bonds (NYSE:MHNB) which became callable on 3/27/2017. Once again income investors lose a fairly solid high yield issue.

The new issue is an offering of 6,000,000 shares and shares have started trading on the OTC Grey Market under the temporary ticker symbol of MDNHF.  Thus far shares have traded in a range of $24.85 to $25.05 closing on Monday at $24.98.

The new preferred shares are rated 2 rungs under investment grade by Standard and Poors and is not rated by Moodys.  We note that last September A.M. Best, who rates insurance companies, upgraded Maiden Holdings LTD to an “A” (excellent).


As required to be able to count the preferred stock as Tier 1 capital the dividends on these shares will be non-cumulative, although they will be qualified distributions and as such will be taxed at the lower capital gains tax rate.

Details of this new issue can be found here.

To get more information on preferred stocks and exchange traded debt (baby bonds), screen them, set up your own portfolio and receive email alerts, go to now.

Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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