Terra Nova Announces Pricing Information For Tender Offer

Terra Nova (Bermuda) Holdings Ltd. has announced pricing information for the tender offer by Terra Nova Insurance (UK) Holdings plc, its wholly owned subsidiary, for all of the outstanding $95,500,000 principal amount of Terra Nova's 10.75% Senior Notes due 2005, and the concurrent consent solicitation. Donaldson, Lufkin & Jenrette Securities Corporation is the Dealer Manager for the tender offer.

The tender offer is scheduled to expire on May 15, 1998 and, assuming satisfaction of the tender offer conditions, Terra Nova will make payment on the Notes validly tendered and accepted for payment pursuant to the Offer to Purchase and Consent Solicitation Statement dated April 20, 1998. The Total Consideration for each $1,000 principal amount of outstanding Notes tendered will be $1,171.89 assuming a payment date of May 18, 1998. The Total Consideration includes the tender offer consideration of $1,166.89 for each $1,000 principal amount of Notes validly tendered on or prior to 12:00 midnight, NYC time, on May 15, 1998, plus a consent payment of $5.00 per $1,000 principal amount of Notes. The tender offer consideration was based on the present value of the Notes using the redemption price of the Notes on July 1, 2000 with a tender offer yield of 5.892% which is the sum of the yield determined at 2:00 p.m., NYC time, on May 12, 1998 for the 5.875% U.S. Treasury Note due June 30, 2000 plus 25 basis points and accrued and unpaid interest up to, but not including, the date of payment for the Notes.