Report: Citizens Property Insurance Corporation plans $1.25 billion debt offering

Jun 7, 2012

The following article was published in the South Florida Business Journal on June 7, 2012:

Report:  Citizens plans $1.25 billion debt offering

www.bizjournals.com

Citizens Property Insurance Corp. will bring $1.25 billion of bonds and notes to market the week of June 11.

The deal could be upsized to $1.5 billion if conditions warrant, according to a report in The Bond Buyer.

Bond proceeds will be used by the state-run, nonprofit insurer as liquidity to pay claims, if needed, during the hurricane season.

JPMorgan is book-runner for the nine-member syndicate pricing the bonds. Raymond James|Morgan Keegan is the insurer’s financial advisor.

Earlier this week, Florida lawmakers expressed support for an overhaul of the state-run insurer, including raising rates and cutting back on its number of policyholders, in order to encourage private insurance companies to enter the market.