Seeking to repay its debts, Liberty Mutual Holding Co. reportedly announced today that a unit providing coverage through independent agents will sell up to $1.41 billion in shares through a public offering.
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.
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