Primus Guaranty, a credit risk investment and advisory company, recently took advantage of favorable rates to raise USD120.6 million through a debt offering to fund its subsidiaries. The issue will provide additional capital for Primus Financial Products, its subsidiary that provides credit risk protection to banks through credit-default swaps.
The Hamilton, Bermuda-based company sold USD125 million of 7% senior notes due Dec. 27, 2036. "We thought it was a good time to do it in the cycle," Richard Claiden, cfo, said. "If you feel you're going to need the money and the money's there at reasonable rates, it's time to do it."
The company will also deploy the funds over the next year to 18 months to support its asset management initiatives. Claiden declined to discuss any specific projects.
The company tapped Wachovia, Morgan Stanley and Lehman Brothers as joint-bookrunning managers. All three banks are credit-default swap counterparties with Primus Financial Products.
