Company: MHLA
Filing Date: 2025-04-21
Form Type: 8-K
Source: 0001104659-25-036855
Chunk: 2

Company: Maiden Holdings, Ltd.
Filing Date: 2025-04-21
Form: 8-K
Item: Item 8.01
Chunk 2
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 statement/prospectus. For clarity, new text within
restated paragraphs from the proxy statement/prospectus is highlighted withbold, underlined text.

The Section of the Proxy Statement/Prospectus
entitled “ The Transaction” is amended and supplemented as follows:

  The paragraph subtitled “ Discounted Cash Flow Analysis”                               
  beginning on page 89 of the proxy statement/prospectus is amended to read as follows.  
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Discounted Cash Flow Analysis. IAP performed an illustrative
discounted cash flow analysis on Kestrel to derive a range of illustrative enterprise values for Kestrel. Using the mid-year convention
for discounting cash flows and discount rates ranging from 14.0% to 16.0%, reflecting estimates of Kestrel’s weighted average cost
of capital, IAP discounted to present value as of December 27, 2024 (i) estimates of unlevered free cash flow for Kestrel
for the fiscal years 2025 through 2028 as reflected in the Management Projections and (ii) a range of illustrative terminal values
for Kestrel, which were calculated by applying terminal year exit enterprise value (“ EV”) to the last twelve month EBITDA
(“ EV/LTM EBITDA”) multiples ranging from 11.0x to 13.0x, to a terminal year estimate of EBITDA to be generated by Kestrel
as reflected in the Management Projections. The range of discount rates reflects a 15.0% estimated weighted average cost of capital
based on a review of ten peer companies, calculated by applying a 4.8% risk free interest rate (the spot 20-year treasury yield), plus
a 5.8% equity risk premium (being 7.2% adjusted by an estimated three-year unlevered beta of 0.81), plus an additional 4.7% size premium.
Unlevered free cash flow was calculated by applying an estimated 21.0% tax rate to EBITDA for each year, resulting in estimated unlevered
free cash flow of $12.2 million in 2025, $18.5 million in 2026, $22.5 million in 2027 and $24.7 million in 2028. The range of
terminal year exit EV/LTM EBITDA multiples was estimated by IAP utilizing its professional