Seeking to repay its debts,
Bloomberg reports this morning that Liberty Mutual Agency Corp. said in a regulatory filing that it intends to sell 64.3 million Class A shares at $18 to $20 each. Additionally, underwriters have the option to an additional 6.43 million shares, should there be sufficient demand.
Earlier this year, Liberty Mutual said that a stock market listing for the unit would boost its options to raise financing for growth. Following the offering, Bloomberg says that the parent company will have about 98% of voting rights and 82% of the subsidiary’s equity.
“We intend to use the net proceeds to us, before expenses, of this offering to repay a portion of indebtedness that we owe or will owe to Liberty Mutual,” the insurer said in its filing.