Shareholders' Equity

3 Months Ended

Jun. 30, 2015

Shareholders' Equity

Shareholders' Equity

Note F—Shareholders’ Equity

[1] Overview:

The Company’s Memorandum of Association, filed on October 31, 2014 in Bermuda, authorized the issuance of one class of shares.  The total number of shares which the Company is authorized to issue was 10,000, each with a par value of $1.00 per share.  Effective March 18, 2015, upon approval of the Board of Directors and the Company’s sole member, RSL, the Company effected a stock split of the authorized, issued and outstanding shares of the Company at a ratio of 100,000-to-1.  The stock split increased the total number of authorized shares from 10,000 to 1,000,000,000, increased the total number of shares issued and outstanding from 750 to 75,000,000, and decreased par value from $1.00 to $0.00001.

[2] Transactions:

On June 16, 2015, the Company completed its initial public offering (“IPO”) of common shares.  The Company sold 24,150,000 shares at a price of $15.00 per share, which included 3,150,000 common shares issued upon the full exercise of the underwriters’ option to purchase additional shares, for gross proceeds of $362,250,000.  The Company received net proceeds of $334,502,000, net of underwriting discounts and commissions and offering expenses of $27,748,000. Substantially all of the cash proceeds are currently deposited with one banking institution and is substantially all in excess of insured levels.

In April 2015, RSL made a cash capital contribution of $750,000.  No additional common shares of the Company were issued in connection with this capital contribution.