ACTION: On January 27, 2009, Shareholders of CastlePoint Holdings, Ltd. (“CPHL”) voted concerning the proposed merger with Tower Group, Inc. (“TWGP”). The merger was approved and, when consummated, each existing CPHL Common Share will be converted into the right to receive approximately .47 TWGP Common Shares plus $1.83 Cash. Cash will be paid in lieu of fractional TWGP shares.
This action will be coordinated with the Options Clearing Corporation.
EQUITY SYMBOL: CastlePoint Holdings, Ltd. (“CPHL”)
ONE CHICAGO SYMBOL: CPHL1C will change to CPHL2C
CME FUTURES SYMBOL: CPH will change to CP2
MULTIPLIER: 100 (e.g., 1.00 equals $100.00)
EFFECTIVE DATE: Thursday, January 29, 2009
NEW DELIVERABLE PER CONTRACT: 1) Approximately 47 Tower Group, Inc. (“TWGP”) Common Shares
2) $183.00 Cash*
*The cash portion of the deliverable remains permanently fixed as part of the deliverable, and does not vary with price changes of securities also included in the deliverable
APPLICABLE CONTRACT MONTHS: February, March, June, September 2009
SETTLEMENT PRICES AND POSITIONS: The underlying price for the CPHL2C Futures contract deliverable, expressed in term of current market value, would be calculated as follows:
CPHL2C = .47 (“TWGP”)
Please note that the valuation would apply only to the CPHL2C deliverable in terms of current market value of the deliverable securities. The resulting price would not be equivalent to the daily settlement price of a futures contract month, whose determination would include cost of money carrying charges, adjustment for dividends, and other factors.
NOTES: The forecasted effect of the upcoming corporate event on each clearing firms’ positions can be viewed in infopac in the Corporate Event Initial Forecast Report (ONE712), the Corporate Event Final Forecast Report (ONE713), and the Corporate Event Forecast Audit Report (CPDBU710).
If you have any questions regarding the information provided in the document, please call CME Clearing risk management hotline at (312) 648-3888.