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Our lawyers provide innovative and practical counsel on a wide variety of capital raising and securities law compliance matters. We represent clients ranging from emerging private companies to established public companies. With each, we build long-term relationships, generating efficiencies and helping them realize their business goals.
Paul, Weiss client Swiss Re Ltd, the holding company for the
Swiss Re Group, entered into a novel funding arrangement under
which it has secured the right to access up to $700 million of
funding at current interest rates, which it can draw down
essentially on a revolving basis under a loan issuance facility
agreement, based on an offering in the capital markets by an
unaffiliated repackaging vehicle. Swiss Re receives regulatory
capital credit for the funding at the time it elects, or is
required, to draw down under the loan issuance facility. At
closing, investors will have purchased $700 million of
fixed-to-floating rate non step-up callable loan notes with a
scheduled maturity in 2050, issued by the repackaging vehicle. The
net proceeds are to be used by the repackaging vehicle to acquire
U.S. Treasury securities. At each drawdown, Swiss Re in effect
receives U.S. Treasury securities, which it can then hold or
liquidate to meet capital and liquidity requirements for its
operating businesses, in return for issuances of hybrid securities
under the funding facility to the repackaging vehicle. While this
is the first offering at the holding company level, under the Swiss
Re structure put in place in 2011, this is another in a long line
of novel hybrid securities issued by the Swiss Re Group.
The Paul, Weiss team included securities partner Mark Bergman and counsel John Satory. Assistance on tax matters was provided by partner David Mayo in the New York office.