On January 20, 2009, Maiden Holdings, Ltd. (“Maiden Holdings”), a Bermuda based holding company, completed a private placement of trust preferred securities with a face amount of $260MM through Maiden Holdings North America, Ltd. (“Maiden NA”), wholly-owned subsidiary of Maiden Holdings. $101MM of the offering was placed through Friedman, Billings & Ramsey, and the balance of $159MM was taken up by certain founding shareholders of Maiden Holdings. Investors in the trust preferred offering also received 11.7MM of common shares of Maiden Holdings with resale registration rights.
Maiden NA will use the proceeds of the offering to support its insurance operations, principally the GMAC Re business acquired from GMAC on November 3, 2008, that has subsequently been re-branded as Maiden Re. See our November 4, 2008 blog posting about the GMAC Re acquisition for details.
A multi-disciplinary team comprised of attorneys from Edwards Angell Palmer & Dodge LLP’s Insurance & Reinsurance, Securities, Tax and Corporate practices in the firm’s New York, Boston and Delaware offices handled this transaction.