Hamilton, Bermuda: 30 March, 2000 Hamilton, Bermuda - Mutual Risk Management Ltd. (MM) today announced that it had completed the purchase of $236 million face amount of its 5.25% Zero Coupon Subordinated Debentures, at a cost of $107.7 million. The Debentures were repurchased during the fourth quarter of 1999 and the first quarter of 2000 and were convertible into 5.1 million Common Shares. Holders of these Debentures had the right to put them back to the Company in October 2000, at a price similar to that paid by the Company. The repurchase of these Debentures will not affect Operating income, but will result in an additional extraordinary charge in the first quarter of approximately $4.3 million, or approximately $0.10 per Common Share. The Company has also repurchased 2.7 million Common Shares out of an authorization of 5 million Common Shares, as previously announced.
Commenting on the buyback, Mr. Robert Mulderig, Chairman and CEO, said that "We have been able to take advantage of the current market price of the Common Shares to repurchase substantially all of the outstanding Debentures. We believe that the elimination of the potential dilution associated with the Debentures will significantly enhance the future value of our Company."
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Mutual Risk Management Ltd. provides risk management services to clients in the United States, Canada and Europe seeking alternatives to traditional commercial insurance for certain of their risk exposures as well as financial services to offshore mutual funds and other companies. Mutual Risk Management Ltd. (MM) Common Shares are listed on the New York and Bermuda stock exchanges.
