Willkie Assists Zurich Financial Services in $1.3 Billion 144A Offering

Zurich Financial Services announces $1.3 billion offering of Enhanced Capital Advantaged Preferred Securities.

In December the firm advised Zurich Financial Services in its $1.3 billion offering of Enhanced Capital Advantaged Preferred Securities or ECAPS^SM.   This unique new hybrid security provides long-term finance for the Zurich group, and due in part to certain deferral features and equity issuance requirements, will afford Zurich the benefit of significant equity credit.  Developed by Lehman Brothers, this was the first offering of ECAPS^SM by an outside issuer following Lehman's initial $300 million offering in August 2005.  On December 22, Zurich closed a follow-on offering of ECAPS for $400 million.  The deal was handled by Willkie partners Serge Benchetrit (Corporate and Financial Services) and Richard Reinhold (Tax); special counsel Catherine Harrington; and associates Susan HoShing, Benjamin Levy, Lindsay Silber, Adam Henslovitz and Andrew Mariniello.  Lehman Brothers was the Structuring Advisor for the transaction and served as the representative of the initial purchasers, which also included Citigroup and Morgan Stanley.