Wunderlich Reiterates Buy Rating On Old Republic International

In a report published by Wunderlich, Old Republic International's ORI Buy rating is reiterated.

Wunderlich said that, on March 2, Old Republic International Corp. (ORI) announced a $500 million convertible debt offering. “The overallotment option of $50 million was exercised on March 9. Net proceeds of the offering are $539 million to be used to pay down $107 million in debt from the PMA Capital acquisition in 3Q10, and $432 million will be used for general corporate purposes. The interest rate on the debt is 3.75%. We believe ORI is taking advantage of current market conditions to raise capital at favorable rates and achieve cost savings on debt inherited from PMA Capital. We reiterate our Buy rating and $16 price target on ORI shares.”

Old Republic International closed yesterday at $12.15.