Item 1.01.
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Entry into a Material Definitive Agreement.
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On May 18, 2020, Alleghany Corporation (the “Company”) completed the sale of $500 million aggregate principal amount of its 3.625% Senior Notes due 2030 (the “Senior Notes) in an underwritten public offering (the “Offering”). The Offering was made pursuant to the Prospectus Supplement dated May 13, 2020 filed with the Securities and Exchange Commission (the “SEC”) on May 14, 2020, and the Prospectus dated May 6, 2020, filed as part of the Company’s Registration Statement on Form S-3 (File No. 333-238047) that became effective when filed with the SEC on May 6, 2020. In connection with the Offering, the Company entered into an Underwriting Agreement, dated May 13, 2020 (the “Underwriting Agreement”), with BMO Capital Markets Corp., Goldman Sachs & Co. LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC.
On May 18, 2020, in connection with the issuance of the Senior Notes, the Company entered into the Fourth Supplemental Indenture, dated as of May 18, 2020 (the “Fourth Supplemental Indenture”), between the Company and The Bank of New York Mellon, as trustee (the “Trustee”). The Fourth Supplemental Indenture, along with the Indenture between the Company and the Trustee, dated as of September 20, 2010, govern the terms of the Senior Notes.
The Senior Notes will bear interest at the rate of 3.625% per annum. Interest on the Senior Notes will be paid semi-annually in arrears on May 15 and November 15 of each year, commencing on November 15, 2020. The Senior Notes will mature on May 15, 2030. Further information concerning the Senior Notes is set forth in the abovementioned Prospectus Supplement and accompanying Prospectus, and the Fourth Supplemental Indenture, including the form of the Senior Notes attached as Exhibit A thereto.
A copy of the Underwriting Agreement and the Fourth Supplemental Indenture are attached hereto as Exhibits 1.1 and 4.1, respectively, and are incorporated herein by reference. The descriptions of the Fourth Supplemental Indenture and the Senior Notes contained herein are summaries only and are qualified in their entirety by the terms of the Fourth Supplemental Indenture.
A copy of the legal opinion and consent of Olshan Frome Wolosky LLP issued to the Company in connection with the issuance of the Senior Notes is attached as Exhibit 5.1 hereto.