Commission to raise about $75 million through sale of Series A preferred stock.

The reinsurer plans to sell three million preferred shares at $25 each, according to an S-3 registration statement filed Thursday with the SEC.

LaSalle Re plans to use the proceeds from the preferred sale to repurchase common stock. The company in February decided to repurchase $125 million of common stock, expanding an earlier commitment to spend $50 million buying back shares.

LaSalle plans to make a public tender offer for $100 million of common stock.

The company will spend another $25 million to purchase shares through open-market and private transactions.

The preferred shares will have a liquidation preference of $25 each. The liquidation preference, which is usually equal to the stock's sale price, refers to the amount of money a holder is entitled to receive in the event of a bankruptcy filing.

In addition, LaSalle will have the option of redeeming the Series A shares, at $25 each, beginning in March, 2007. The preferred stock will not have a stated maturity.

Smith Barney Inc., Lazard Freres & Co. LLC, and Morgan Stanley & Co. Inc. will underwrite the stock sale for LaSalle.

Lehman Brothers equity analyst Peter Wade said this "swapping'' of common equity for preferred equity is a shareholder friendly move which also benefits the company.

Shareholders wishing to sell have that option, while those who do not hold a stake in a company that is creating value at a greater pace, he said.

For LaSalle, it cuts the net cost of capital for this $75 million in half and enables the company to repay common equity while maintaining ratings, he said.

And the move to buy back stock occurs at a time when deploying capital back into reinsurance may be difficult, he added.