Stewart Launches Private Placement of $60 Millon Convertible Senior Notes
HOUSTON (October 8, 2009) — Today, Stewart Information Services Corporation (NYSE–STC) announced its intention to offer, subject to market and other conditions, $60 million aggregate principal amount of Convertible Senior Notes due 2014 (the “Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).
The Notes will be guaranteed by Stewart’s wholly-owned subsidiary, Stewart Title Company , and certain of its wholly-owned domestic subsidiaries. The Notes will be senior unsecured obligations of Stewart and will rank senior in right of payment with all existing and future indebtedness of Stewart that is expressly subordinated in right of payment to the Notes.
Stewart intends to use the net proceeds from the offering and existing cash on hand to pay down an aggregate amount of $60.5 million of outstanding unsecured callable bank debt, which results in an extension of our debt maturities.
The Notes, the subsidiary guarantees and the underlying shares of common stock that may be delivered upon conversion of the Notes have not been registered under the Securities Act or any state securities laws, and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state laws. This press release shall not constitute an offer to sell or the solicitation of any offer to buy any of these securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Stewart Information Services Corporation (NYSE-STC) is a customer-driven, technology-enabled, strategically competitive real estate information, title insurance and transaction management company. Stewart provides title insurance and related information services required for settlement by the real estate and mortgage industries throughout the United States and in international markets. Stewart also provides post-closing lender services, automated county clerk land records, property ownership mapping, geographic information systems, property information reports, flood certificates, document preparation, background checks and expertise in tax-deferred exchanges. More information can be found at www.stewart.com.