The Firm represented Lehman Brothers Inc. and Goldman, Sachs & Co. as placement agents in connection with an offering of $500,000,000 aggregate principal amount of 6.25% Notes due December 15, 2011 by Citadel Finance Ltd. (the “Issuer”) pursuant to Rule 144A. This offering marks the first time a hedge fund has issued long-term unsecured debt securities into the Rule 144A market.
The notes are guaranteed by Citadel Kensington Global Strategies Fund Ltd. and Citadel Wellington LLC (the “Funds”) and are rated investment grade by S&P and Fitch. The Funds have investment capital of over $12 billion and are managed by Citadel Limited Partnership, one of the largest independent hedge fund operators. The Issuer and the Funds are not registered under the Investment Company Act of 1940, as amended, in reliance on the exclusion set forth in Section 3(c)(7).
The notes were issued under the Issuer’s recently established Medium-Term Note Program, pursuant to which the Issuer may offer and sell up to an additional $1.5 billion aggregate principal amount of notes.
The Simpson Thacher team included Andy Keller, Christopher Frigon, Kristin McDonald and Kelly Jin (Corporate), Tom Bell and Olga Gutman (Private Funds), John Creed and Jonathan Cantor (Tax) and Jeanne Annarumma (ERISA).