Simpson Thacher advises banks on Bermuda notes issuance

Simpson Thacher represented Goldman Sachs and HSBC Securities on a notes issuance and repurchase by the government of Bermuda

The banks acted as initial purchasers and joint dealer managers in connection with the issuance and sale by the government of Bermuda of $675 million of its 2.375 per cent senior notes due 2030, and $675 million of its 3.375 per cent senior notes due 2050, as well as in the repurchase by the government of $500 million in aggregate principal amount of its existing 4.138 per cent senior notes due 2023, 4.854 per cent senior notes due 2024, 3.717 per cent senior notes due 2027, and 4.75 per cent senior notes due 2029 in a partial cash tender offer.

A portion of the net proceeds from the offering was used to purchase the notes accepted in the partial cash tender offer, with the remainder to be used for general budgetary purposes, including the funding of certain COVID-19-related government measures, the repayment of credit facilities with local banks and contributions to the government’s sinking fund, the law firm said.

The offering and the partial cash tender offer closed simultaneously and were approved by the government of Bermuda and managed by the Ministry of Finance.

The Simpson Thacher team for the transaction included Kirsten L. Davis (pictured), Jaime Mercado and Alexander González Castillo from the capital markets practice, and Jonathan Cantor and Brian Mendick from the firm’s tax practice.