Chubb INA Holdings offers guaranteed senior notes in two tranches

By Marisa Wong

Los Angeles, Nov. 15 – Chubb INA Holdings Inc. plans to price fixed-rate senior notes guaranteed by Chubb Ltd. in two parts, according to a 424B3 filing with the Securities and Exchange Commission.

The notes will feature a make-whole call and then a par call. The notes will also be callable in whole for tax reasons.

BofA Securities, Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities, LLC, Barclays, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the joint bookrunners.

All proceeds will be received and used exclusively outside Switzerland. Chubb INA intends to use $1.1 billion of the proceeds to fund a portion of its acquisition of the life and non-life insurance companies that house the personal accident, supplemental health and life insurance business of Cigna Corp. in seven Asia-Pacific markets for $5.75 billion in cash.

The remainder of the proceeds will be used for general corporate purposes, including the repayment at maturity of the company’s $475 million outstanding 2.7% senior notes due March 13, 2023.

Chubb INA is a Philadelphia-based holding company and has no direct insurance operations. Parent company Chubb is an insurance provider based in Zurich.

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