XL Capital Ltd.'s tangible book value received a boost of around $1.75 per share yesterday with the remarketing of $745 million of senior notes.

Tangible book value stood at $12.88 at December 31, 2008.

The Bermuda-based business insurer announced after the markets closed yesterday that it completed the remarketing of the $745 million aggregate principal amount of 5.25% senior notes due 2011, comprising part of its 7.00 percent Equity Security Units and settled the forward purchase contract component of the ESUs.

The company purchased all of the senior notes in the remarketing at an aggregate price of 100.25 percent of the aggregate principal amount thereof, in accordance with the terms of the ESUs.

The company will retire all of the senior notes that it purchased in the remarketing. The proceeds from the remarketing were used to satisfy the purchase price for the company's Class A ordinary shares sold to holders of the ESUs pursuant to the forward purchase contracts.

Each forward purchase contract provided for the sale by the company of 0.3846 shares at a price of $25.00. The settlement of the forward purchase contracts resulted in the Company's sale of an aggregate of 11,461,080 Shares for an aggregate purchase price of $745 million.