28.06.2018

Swiss Re issues USD 500m senior exchangeable notes with issuer stock settlement

Swiss Re Ltd (Swiss Re) has completed an offering of USD 500 million, 6-year senior exchangeable notes, which may be stock settled at the option of Swiss Re or may be exchanged at the option of noteholders for registered shares of Swiss Re, unless Swiss Re elects to settle the exchange of notes in cash. Swiss Re has purchased call options on its own shares, which allow it to settle an exchange by noteholders without issuing new shares.

As is customary for international offerings of debt securities by Swiss (re-)insurers, Swiss Re issued notes to a repackaging vehicle, in this case ELM B.V. ELM B.V. issued its own 6-year exchangeable notes secured by the notes issued by Swiss Re.

Niederer Kraft Frey advised Barclays Bank PLC, Deutsche Bank AG, London Branch, J.P. Morgan Securities plc, Merrill Lynch International and UBS Limited in their capacity as joint lead managers. The NKF team was led by partners Philippe Weber and Marco Häusermann, working with associate Giulia Ghezzi.