Milbank Advises Citigroup and Other Dealers on US$7.5 Billion Global Medium Term Note Program For One of the Largest Banks in Iceland
New York and London Legal Team Structures Program for Landsbanki Islands hf. and Closes on Initial Benchmark Issuances
NEW YORK, September 5, 2006 – Landsbanki Islands hf., one of the largest banks in Iceland, has established a US$7.5 billion Global Medium Term Note (MTN) Program for the issuance of debt securities and issued an initial US$750 million of floating rate notes and US$1.5 billion of fixed rate notes under this program. The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by partner Michael Fitzgerald, represented Citigroup and the other dealers in establishing the MTN program and on the issuance of an initial US$2.25 billion of notes.
The MTN program, which enables Landsbanki to issue senior and subordinated debt and capital securities in the United States pursuant to Rule 144A and outside the United States under Regulation S, provides Landsbanki with more efficient access to the U.S. and other international debt markets. Citigroup, Banc of America Securities and Deutsche Bank Securities were the lead dealers in both the establishment of the MTN program and the initial US$2.25 billion issuance of bonds.
Landsbanki Islands hf., headquartered in Reykjavik, Iceland, is one of the largest Northern European banks. Landsbanki operates in all of the Nordic countries, Luxembourg, the United Kingdom and the United States.
Mr. Fitzgerald commented, "This transaction is one of the largest inaugural debt issuances of the year out of Europe. Landsbanki’s first ever issuance into the United States market is remarkable for the size of the offering and the speed of execution, despite the recent high volatility in the Icelandic market. The seamless teamwork of lawyers in our London and New York offices allowed us to manage the transaction on a “24/7” basis and meet the needs of our clients quickly and efficiently.”
Milbank lawyers in New York and London worked with the bankers in those cities and with the issuer in Reykjavik, Iceland. The Milbank team representing the dealers was led by New York partner Michael Fitzgerald, counsel Taisa Markus and associate Scott Rozic; and London partner Tom Siebens and associate David Gasperow. New York partner Bruce Kayle and associate Drew Batkin provided tax advice.
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