News & Events

The Firm recently represented HSBC Securities (USA), in its capacity as dealer manager in a cash tender offer and initial purchaser of a new issue of securities, in connection with:

(i) A tender offer to holders of its outstanding U.S. dollar-denominated 5.063% Notes due 2020 (the “2020 Notes”) and 4.138% Notes due 2023 (the “2023 Notes”) to purchase up to $150 million in aggregate principal amount of such notes for cash. Due to high participation in the offer, the Government accepted $276 million of tenders for cash of the 2020 Notes and did not accept any tenders of the 2023 Notes.

(ii) The issuance and sale of $665 million aggregate principal amount of its 3.717% Notes due 2027 (the “New Bonds”), pursuant to the exemptions from registration provided by Rule 144A and Regulation S under the Securities Act. The net proceeds from this issuance were used to pay for the 2020 Notes accepted in the cash tender, and the remainder to repay a sovereign loan outstanding and to finance the budget deficit.

This transaction represented the first time the Government of Bermuda has consummated a liability management transaction in the international capital markets.

The partial cash tender and new notes issue closed simultaneously as part of a liability management transaction approved by the Government of Bermuda and managed by the Ministry of Finance.

The Simpson Thacher team for the transactions included Jaime Mercado, Alex Muller and Kirsten Harmon (Capital Markets); and Sarah Katz (Tax).