XL expects to use the net proceeds of the offering of the convertible debentures to fund its purchase of XL ordinary shares and for general corporate purposes, which may include the repayment of a portion of its outstanding indebtedness, acquisitions and additional share purchases.
XL also intends to place up to approximately $500 million of long-term debt. XL expects to use the net proceeds of the placement of the long-term debt for general corporate purposes, which may include the repayment of a portion of its outstanding indebtedness, acquisitions and additional purchases of outstanding ordinary shares. Any such additional purchases from the proceeds of the convertible debentures or the long-term debt will be determined based upon prevailing market conditions.
XL Capital Ltd, through its operating subsidiaries, is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies, and other enterprises on a worldwide basis. As at June 30, 2001, XL had consolidated assets of approximately $18.7 billion and consolidated shareholders' equity of approximately $5.7 billion. More information about XL is available on www.xlcapital.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the convertible debentures or any other securities, nor will there be any sale of the convertible debentures or any other securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The convertible debentures will be issued in reliance on the exemption from the registration requirements provided by Rule 144A. None of the convertible debentures, the underlying ordinary shares or the long-term debt have been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.
This press release may contain forward-looking statements which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about XL's beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements and therefore you should not place undue reliance on them. A non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements is set forth in XL's most recent report on Form 10-K and XL's other documents on file with the Securities and Exchange Commission. XL undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.