Insurer Ace Group on Tuesday announced a US$5.3bn four-part bond to help finance its acquisition of Chubb, a deal expected to price later in the day.Morgan Stanley, JP Morgan and Citigroup are active bookrunners on the transaction, comprising five, seven, 10.5 and 30-year tranches.
Initial price thoughts are Treasuries plus 110bp area, 130 base points area, 150 base points area and 170 base points area, respectively.
Shareholders of the two companies approved the merger last week. It is the largest ever takeover in the insurance sector.
The combined company, which will adopt Chubb's name, will be led by Ace CEO Evan Greenberg, the son of former American International Group Inc. boss Maurice Greenber