Company: KG
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028251
Chunk: 97

Company: Kestrel Group Ltd
Filing Date: 2025-03-26
Form: 424B3
Chunk 97
---
.1 million, accumulated deficit of $700.7 million, and accumulated other comprehensive loss of $32.7 million.

(l)

Reflects a pro forma adjustment to record the gross consideration transferred in amount of $108.6 million to additional paid-in capital. The common shares issued to Maiden Reinsurance of $33.5 million are presented as treasury shares and are excluded from the net consideration transferred of $75.1 million.

(m)

Reflects a pro forma adjustment to record the recapitalization of Kestrel, pursuant to the combination agreement, through the issuance of 2,750,000 shares of Bermuda NewCo, cash payments of $40.0 million and assumed liabilities of $19.3 million related to the fair value of earnout consideration and to present the recast of the Kestrel’s historical equity of $10.1 million to reflect the capital structure of Bermuda NewCo.

(n)

Reflects a pro forma adjustment to record the acceleration of Kestrel’ stock compensation cost of $0.2 million, as measured at the original grant dates, due to the repurchase of Kestrel stock-based compensation awards (see Note 6(i) above).

(o)

Based on the preliminary estimated fair values of the assets acquired and liabilities assumed, a bargain purchase gain of $153.9 million will be recognized in this transaction (see Note 4 above).

6. Adjustments to Unaudited Pro Forma Condensed Consolidated Combined Statement of Operations

The pro forma adjustments, based on preliminary estimates that could change materially as additional information is obtained, are as follows:

#### Pro forma Transaction Accounting Adjustments
(a)

Reflects a pro forma adjustment to record VOBA amortization of $2.6 million in line with the earning pattern of unearned premiums (see Note 5(b) above).

(b)

Reflects a pro forma adjustment to eliminate the historical deferred gain on retroactive reinsurance amortization of less than $0.1 million (see Note 5(d) above).

(c)

Reflects a pro forma adjustment to eliminate the historical deferred debt issuance costs amortization of $0.2 million (see Note 5(e) above).

(d)

Reflects a pro forma adjustment to record of amortization of the senior notes fair value adjustment over the remaining life of the notes (see Note 5(e) above).

(e)

Reflects a pro forma adjustment to record the amortization of the loan to a related party and the premium repayment loan fair value adjustments over the remaining lives of the