Terms

Series

4.25% Subordinated Debentures due 2060

Liquidation Preference

$25.00

Coupon Rate

4.25%

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

September 30, 2025

First Call Price

$25.00

Mandatory Redemption Date

September 30, 2060

Capital Stack Ranking

Junior To: All Existing And Future Senior Indebtedness Of W. R. Berkley Corporation, All Liabilities Of Subsidiaries (Structural Subordination); Pari Passu With: Indebtedness Ranking On A Parity With The Debentures; Senior To: Common Stock, Parity Debt Securities

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

W. R. Berkley Corporation is offering $250 million of 4.25% Subordinated Debentures due September 30, 2060, denominated in $25 increments and listed on the NYSE under 'WRB PR G.' The debentures pay a fixed 4.25% annual interest rate quarterly on March 30, June 30, September 30, and December 30. Importantly, the issuer may defer interest for up to five consecutive years; during deferral, interest compounds quarterly, meaning payments are not permanently lost but are deferred — a meaningful risk distinction from non-cumulative preferred stock. The debentures are callable at par on or after September 30, 2025, and mature in full on September 30, 2060. The debentures are unsecured obligations of the W. R. Berkley Corporation holding company and rank junior to all of its existing and future Senior Indebtedness, but senior to or pari passu with other subordinated obligations. Critically, because W. R. Berkley's operating subsidiaries are the actual insurance businesses, these debentures are structurally subordinated to all liabilities of those subsidiaries — meaning subsidiary creditors are paid first before any value flows up to the holding company. There is a special call at 102% of principal upon a 'rating agency event' (within 90 days), and a par call upon a 'tax event,' both exercisable prior to September 30, 2025. No regulatory Tier 1 capital call provision is present. At a $25 par denomination, the 4.25% coupon equates to approximately $1.0625 annually or roughly $0.2656 per quarter. As debt instruments, interest payments are taxed as ordinary income — they do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate applicable to most preferred stock dividends, nor for the corporate dividends-received deduction (DRD). Record dates fall on the 15th of March, June, September, and December. If the issuer exercises its deferral right, it is broadly prohibited from paying dividends on common stock or making payments on junior or parity securities, creating a dividend stopper that protects debenture holders' accumulated but deferred interest.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If W. R. Berkley defers interest on the debentures, it is generally prohibited from paying dividends or making payments on its common stock or any pari passu or junior securities until the deferral ends, subject to limited exceptions.

Other Preferreds from W. R. Berkley Corp

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 54 (Average)