A.M. Best Co. has assigned a "bbb" to Zenith National Insurance Group's (NYSE: ZNT) (Van Nuys, CA) $110 million 5.75% senior unsecured convertible notes, due March 2023 and issued under Rule 144a.
The notes contain a put option, which is first exercisable by the investor in 2010. Proceeds from the notes will be partially used to repay $45 million of short-term bank debt, while the remainder will be used for general corporate purposes, including additional surplus infusions into Zenith's operating subsidiaries. The rating outlook is stable.
The rating reflects management's ongoing commitmen...
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