XL Group plc has announced the issuance of $350 million in series D preference ordinary shares by its wholly-owned subsidiary XL Group Ltd for consideration of cash and liquid investments which are being held in a trust account as part of the Stoneheath Re facility.Holders of the non-cumulative perpetual preferred securities issued by Stoneheath Re in December 2006 will receive one series D preferred share in exchange for each Stoneheath security.This distribution will be made on November 16, 2011.XL-Cayman intends to use the consideration it will receive as partial funding for the repayment at maturity of the outstanding $600 million 6.5 percent guaranteed senior notes due in 2012 of XL Capital Finance (Europe) plc, a wholly-owned subsidiary of XL, with the balance available for general corporate purposes.