HAMILTON, Bermuda, Nov. 1, 2016 /PRNewswire/ -- Sirius International Insurance Group, Ltd. ("Sirius Group") today announced that it has raised, through its indirectly wholly owned subsidiary Sirius International Group, Ltd. ("SIG"), $400 million in 4.600% Senior Notes due 2026. The Senior Notes will have a scheduled maturity of November 1, 2026.
The Senior Notes were allocated approximately two-thirds to leading institutional investors in Asia, reflecting the strategic initiative of Sirius Group to develop its capital market presence in Asia following its recent acquisition by CM International Holding Pte. Ltd. (''CMIG International''), the Singapore-based investment arm of China Minsheng Investment Corp., Ltd. (''CMIG''). The remainder was allocated to investors in the United States and Europe. The Senior Notes were issued at a price of 99.209% of the principal amount of the Notes. Sirius Group intends to use the proceeds of the Senior Notes to redeem or repurchase at or prior to maturity SIG's 6.375% senior unsecured notes due 2017, of which $389.7 million is currently outstanding. As a result of the refinancing, Sirius Group is expected to achieve yearly pre-tax savings on interest payments of approximately $7 million. Commenting on the Senior Notes offering, Allan Waters, Sirius Group's President and CEO said: "This transaction represents an important recognition of our ability to tap global capital markets following the recent acquisition of Sirius Group by CMIG International. In particular, we are very pleased with the increased financial flexibility which we have gained from our enhanced access to capital from Asian investors."