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Conyers Dill & Pearman advised Sirius International Group Ltd. on the issuance of its SEK Floating Rate Callable Subordinated Notes, due 2047, which represent the largest SEK insurance hybrid issuance to date, having a contractual maturity of 30 years. The Notes are callable at par after five years and carry a floating rate of interest with a coupon of 3 month STIBOR +400 basis points (approximately 3.6% at execution).
The proceeds of the transaction will be used by Sirius International Group, Ltd. to redeem all of its existing perpetual non-cumulative preference shares and for other general corporate purposes.
The Notes are rated BB+ by S&P and BB+ by Fitch. The Notes are expected to receive Tier 2 capital treatment under the Bermuda Monetary Authority’s solvency rules and will receive intermediate equity treatment from S&P as well as 100% credit in Fitch’s capital adequacy ratio.
Chris Garrod and Jacqueline King of Conyers’ Bermuda office advised on the matter working alongside Willkie Farr & Gallagher LLP. Cleary Gottlieb Steen & Hamilton LLP acted for the banks.