Tower Group, Inc. Announces Pricing of $135 Million Private Offering

Tower Group, Inc. TWGP today announced the pricing of $135 million aggregate principal amount of 5.00% Convertible Senior Notes due 2014 through a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes will bear interest at a rate of 5.00% per year, payable semiannually in arrears on March 15 and September 15 of each year, beginning March 15, 2011. In certain circumstances, the notes may be converted at an initial conversion rate of 36.3782 shares of Tower's common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $27.49 per share of Tower's common stock, representing a 27.5% conversion premium over the closing price of $21.56 per share on the NASDAQ Global Select Market on September 14, 2010. The notes will be convertible prior to March 15, 2014 only upon specified events and thereafter at any time.