The Firm recently represented HSBC Securities (USA) Inc., as initial purchaser, in connection with a Rule 144A/Regulation S offering of US$312 million of 5.95% Notes due 2019 by the Government of the Cayman Islands. The offering represented the Cayman Islands government’s inaugural debt offering in the broader international capital markets.
The Cayman Islands is an Overseas Territory of the United Kingdom and is located in the Caribbean. The Cayman Islands has a population of approximately 57,000 people.
The Cayman Islands government used the net proceeds from the debt offering to repay bridge loans that the government incurred to finance capital and investment projects as well as its budget deficit for its fiscal year ended June 30, 2009.
In October 2009, the Firm represented HSBC Bank (USA) National Association, an affiliate of the initial purchaser, in connection with a US$127.4 million bridge loan to the Cayman Islands government, which was one of the bridge loans repaid with the net proceeds of the debt offering.
The Simpson Thacher team for the debt offering and the related bridge loan transaction included Glenn M. Reiter, Juan F. Mendez, Shih-Chi Pan and former summer associate Ceara Donnelley (Capital Markets), Alan Brenner and Makiko Harunari (Credit), and Jonathan Cantor and Andrew Purcell (Tax).