That comes despite a cash infusion of $1bn in the form of convertible debentures led by Fairfax Holdings, which has a 10% stake in the company, ahead of Chen's hiring, and its holdings at the end of the last quarter of $2.3bn in cash.
Hurricane's board decided to fight the takeover offer by issuing a $200 million special dividend to shareholders in the form of a debenture, a move that would oblige a buyer to use its own cash rather than Hurricane's assets to pay for a takeover.
Now their serenity has been disrupted by Reignwood's announcement that, next year, their memberships will be annulled and they will be required to pay a rejoining fee of £100,000 – apparently in the form of a redeemable debenture – with a doubling of the annual family subscription to £16,000.
As Metropolitan expanded throughout the 1990's, state regulators kept a tight rein on the company, making sure that its operations would generate enough cash to repay investors who bought its debentures, a form of unsecured debt.
They are usually structured either as 15- to 20-year "debentures", which are a form of loan to a company, as five-year bonds, or as share offerings through a "community benefit society" (similar to a co-operative).
So regulators put limits on the amount of money Metropolitan could raise through sales of debentures and preferred stock.
Hub International will pay $9.33 in cash and $4.67 principal amount of debentures convertible into shares of Hub shares at $11.27 a share.
Most significant, Metropolitan no longer had to abide by the state's limits on the amount of debentures it could issue.
The company, which is based in Atlanta, said the difference was a result of a redemption of $250 million of debentures on July 1.
The following taxable and tax-exempt fixed-income issues are scheduled for pricing this week: TAXABLE ONE DAY DURING THE WEEK Agrium Inc., $200 million of debentures, Baa2/BBB/.
