Arch Capital prices tender offers for $417.9M in subsidiary debt

Arch Capital Group Ltd. (NASDAQ: ACGL) announced the pricing of cash tender offers to purchase up to $417,851,000 in aggregate principal amount of debt securities issued by two of its wholly-owned subsidiaries, according to a press release.

The offers cover two series of notes: 5.144% Senior Notes due 2043, issued by Arch Capital Group (U.S.) Inc., and 5.031% Senior Notes due 2046, issued by Arch Capital Finance LLC. Both series carry an outstanding principal amount of $500,000,000 and $450,000,000, respectively.

As of the early tender deadline of June 15, 2026, $218,712,000 in principal amount of the 2043 Notes and $199,139,000 of the 2046 Notes were validly tendered. Both amounts are expected to be accepted in full, with no proration required. The total consideration per $1,000 principal amount was set at $960.00 for the 2043 Notes and $942.30 for the 2046 Notes, inclusive of a $50 early tender premium. Both series were priced using a reference yield of 4.954%, based on the 5.00% U.S. Treasury due May 15, 2046, plus a fixed spread of 55 basis points.

The company said the financing condition for the tender offers has been satisfied. Payment for notes accepted at the early tender deadline is expected on June 18, 2026. Because tendered notes have reached the maximum amount, the company does not expect to accept notes tendered after the early deadline. The tender offers are scheduled to expire at 5:00 p.m. New York time on July 1, 2026.

Holders will also receive accrued and unpaid interest from the last interest payment date up to, but not including, the early settlement date.

Wells Fargo Securities, LLC and BofA Securities, Inc. are serving as dealer managers for the offers. Global Bondholder Services Corporation is the tender and information agent.

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