Alleghany Announces Pricing Of $500 Million Of 3.625% Senior Notes Due 2030

NEW YORK, May 13, 2020 /PRNewswire/ -- Alleghany Corporation ("Alleghany") (NYSE: Y) today announced that it has priced its public offering of $500 million of 3.625% Senior Notes due 2030 (the "Senior Notes"). The Senior Notes were priced at 99.867% of par.

BMO Capital Markets Corp., Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers for the Senior Notes offering, which is expected to close on May 18, 2020, subject to customary closing conditions. Alleghany intends to use the net proceeds from the sale of Senior Notes for general corporate purposes, which may include the repayment of existing debt.

The Senior Notes will be issued pursuant to an effective shelf registration statement and prospectus supplement filed with the Securities and Exchange Commission (the "SEC"). The offering is being made only by means of a prospectus supplement and an accompanying base prospectus. Copies of these documents may be obtained by calling BMO Capital Markets Corp. at 1 (866) 864-7760, Goldman Sachs & Co. LLC at 1 (866) 471-2526, U.S. Bancorp Investments, Inc. at 1 (877) 558-2607 and Wells Fargo Securities, LLC at 1 (800) 645-3751.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Senior Notes, nor may it be used in connection with an offer or solicitation of the Senior Notes by anyone in any jurisdiction in which such offer or solicitation is not authorized in which the person making such offer or solicitation is not authorized or qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.

About Alleghany Corporation

Alleghany Corporation creates value by owning and supporting its operating subsidiaries and managing investments, anchored by a core position in property and casualty reinsurance and insurance. Alleghany's property and casualty subsidiaries include: Transatlantic Holdings, Inc., a leading global reinsurer; RSUI Group, Inc., which underwrites wholesale specialty insurance coverages including property, casualty, professional liability and directors' and officers' liability; and CapSpecialty, Inc., an underwriter of commercial property, casualty and surety insurance coverages.

Alleghany's subsidiary Alleghany Capital Corporation (referred to herein as "Alleghany Capital") owns and manages a diverse portfolio of non-financial businesses. Alleghany Capital's investments are categorized as either industrial businesses or non-industrial businesses. The industrial businesses include: (i) Precision Cutting Technologies, Inc., a holding company with four operating businesses: (a) Bourn & Koch, Inc., a provider of precision automated machine tool solutions; (b) Diamond Technology Innovations, Inc., a manufacturer of waterjet orifices and nozzles and a provider of related services; (c) Coastal Industrial Distributors, LLC, a provider of high-performance solid carbide end mills;  and (d) as of March 2020, Supermill LLC, a manufacturer of high-performance carbide end mills;  (ii) R.C. Tway Company, LLC (dba "Kentucky Trailer"), a manufacturer of custom trailers and truck bodies for the moving and storage industry and other markets; (iii) WWSC Holdings, LLC, a structural steel fabricator and erector; and (iv) Wilbert Funeral Services, Inc., a provider of products and services for the funeral and cemetery industries and precast concrete markets.  The non-industrial businesses include: (i) IPS-Integrated Project Services, LLC, a design, engineering, procurement, construction management and validation service provider focused on the global pharmaceutical and biotechnology industries; (ii) Jazwares, LLC, a global toy, entertainment and musical instrument company; and (iii) CHECO Holdings, LLC, a hotel management and development company. For additional information about Alleghany Capital Corporation, please visit www.alleghanycc.com.

Forward-looking Statements

Certain statements contained in this press release may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should" or the negative versions of those words or other comparable words. Forward-looking statements do not relate solely to historical or current facts, rather they are based on management's expectations as well as certain assumptions and estimates made by, and information available to, management at the time. These statements are not guarantees of future performance. These forward-looking statements are based upon Alleghany's current expectations and are subject to a number of uncertainties and risks that could significantly affect current plans, anticipated actions and Alleghany's future financial condition and results. Factors that could cause these forward-looking statements to differ, possibly materially, from that currently contemplated include: significant weather-related or other natural or man-made catastrophes and disasters; the effects of outbreaks of pandemics or contagious diseases, including the length and severity of the recent worldwide coronavirus pandemic, known as COVID-19, including its impact on our business; the cyclical nature of the property and casualty reinsurance and insurance industries; changes in market prices of our significant equity investments and changes in value of our debt securities portfolio; adverse loss development for events insured by our reinsurance and insurance subsidiaries in either the current year or prior years; the long-tail and potentially volatile nature of certain casualty lines of business written by our reinsurance and insurance subsidiaries; the cost and availability of reinsurance; the reliance by our reinsurance and insurance operating subsidiaries on a limited number of brokers; legal, political, judicial and regulatory changes; increases in the levels of risk retention by our reinsurance and insurance subsidiaries; changes in the ratings assigned to our reinsurance and insurance subsidiaries; claims development and the process of estimating reserves; exposure to terrorist acts and acts of war; the willingness and ability of our reinsurance and insurance subsidiaries' reinsurers to pay reinsurance recoverables owed to our reinsurance and insurance subsidiaries; the uncertain nature of damage theories and loss amounts; the loss of key personnel of our reinsurance or insurance operating subsidiaries; fluctuation in foreign currency exchange rates; the failure to comply with the restrictive covenants contained in the agreements governing our indebtedness; the ability to make payments on, or repay or refinance, our debt; risks inherent in international operations; and difficult and volatile conditions in the global market.

Additional risks and uncertainties include general economic and political conditions, including the effects of a prolonged U.S. or global economic downturn or recession; changes in costs; variations in political, economic or other factors; risks relating to conducting operations in a competitive environment; effects of acquisition and disposition activities, inflation rates, or recessionary or expansive trends; changes in interest rates; extended labor disruptions, civil unrest, or other external factors over which we have no control; changes in our plans, strategies, objectives, expectations, or intentions, which may happen at any time at our discretion; and other factors discussed in our Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and subsequent filings with the SEC, as well as the risks and uncertainties set forth under the heading "Risk Factors" in the prospectus supplement related to the offering to which this press release relates. All forward-looking statements speak only as of the date they are made and are based on information available at that time. Alleghany does not undertake any obligation to update or revise any forward-looking statements to reflect subsequent circumstances or events.

SOURCE Alleghany Corporation

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