Aspen Insurance prices $300 million in senior notes due 2030

HAMILTON, Bermuda - Aspen Insurance Holdings Limited (NYSE: AHL), with a market capitalization of $3.02 billion, has priced an underwritten public offering of $300 million aggregate principal amount of 5.750% senior notes due 2030, the company announced Tuesday. The notes were priced at 99.870% of the principal amount and will mature on July 1, 2030.

The insurance provider intends to use the net proceeds from the offering, along with cash on hand, to repay outstanding indebtedness under its term loan credit agreement. According to InvestingPro data, the company’s current ratio stands at 0.76, indicating tight liquidity, while total debt amounts to $373.1 million.

Citigroup Global Markets Inc., HSBC Securities (USA) Inc., and Lloyds Securities Inc. are serving as joint book-running managers for the offering, which is being made pursuant to an effective shelf registration statement.

The transaction is expected to close on June 13, 2025, subject to customary closing conditions.

Aspen provides insurance and reinsurance coverage to clients in various markets through wholly-owned operating subsidiaries in Bermuda, the United States, and the United Kingdom, as well as branch operations in Canada, Singapore, and Switzerland.

The information in this article is based on a press release statement from the company.

In other recent news, Aspen Insurance Holdings has been the focus of several analyst reports highlighting its financial performance and future outlook. Wells Fargo initiated coverage with an Equal Weight rating, setting a price target of $37 and providing earnings per share estimates for the coming years, reflecting a stable return on equity. Meanwhile, Citi analysts began coverage with a Buy rating and a higher price target of $43, indicating a positive outlook and potential for substantial returns. Piper Sandler also expressed optimism with an Overweight rating and a $40 price target, noting improvements in Aspen’s underwriting profitability and growth in gross written premiums.

Goldman Sachs provided a Neutral rating with a $38 target, acknowledging Aspen’s strategic focus on underwriting profit and investment performance, but noting that the stock seems fairly valued given current pricing pressures. JMP analysts were bullish, assigning a Market Outperform rating and a $45 target, emphasizing Aspen’s strong market positioning and attractive valuation relative to peers. Aspen’s recent initiatives, such as reducing volatility in underwriting performance and capitalizing on favorable market conditions, have been pivotal in shaping these analyses.

The company’s financial performance, including a robust operating return on equity and improved combined ratios, has drawn attention from analysts. Aspen’s strategic adjustments since its acquisition by Apollo in 2019 have been instrumental in its recent success. As Aspen continues to navigate the competitive insurance market, its focus on profitability and growth remains a central theme in these recent analyst reports.

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