Milbank Advises Citigroup and Other Dealers on US$10 Billion Global Medium Term Note Program for Largest Bank in Iceland
“24/7” International Legal Team Structures Program for Kaupthing Bank hf. and Closes on Initial US$500 Million Issuance
NEW YORK, NY, April 19, 2006 – Kaupthing Bank hf., the largest bank in Iceland, has established a US$10 billion Global Medium Term Note (MTN) Program for the issuance of debt securities and issued an initial US$500 million of 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$500 million of Floating Rate Notes.
The MTN program, which enables Kaupthing Bank 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 Kaupthing with more efficient access to various international debt markets. Citigroup and Deutsche Bank were the lead dealers in both the establishment of the MTN program and the initial US$500 million issuance of five-year bonds.
Kaupthing Bank hf., headquartered in Reykjavik, Iceland, is one of the largest Northern European banks and is the largest bank in Iceland. Kaupthing operates in all of the Nordic countries, Luxembourg, the United Kingdom, Switzerland and the United States.
Mr. Fitzgerald commented, “This transaction is notable for its size and speed of execution. Kaupthing’s ability to access the markets at this time reflects continued investor interest in Iceland despite recent significant market volatility. The seamless teamwork of partners in our offices in different time zones allowed us to manage the transaction on a “24/7” basis and meet the needs of our client 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 associates Melinda Creasman and Scott Rozic; and London partner Tom Siebens and associate David Gasperow. New York partner Bruce Kayle and associate Drew Batkin provided tax advice.
Milbank, Tweed, Hadley & McCloy LLP is a preeminent global law firm that is recognized for more than 140-years for providing innovative legal solutions in many of the world’s largest, most complex, “first-ever” corporate transactions, including capital markets, corporate finance, project finance, acquisition finance, and other major fields of law practice. Milbank clients range from prominent multinational financial, industrial and commercial enterprises to governments, institutions and individuals. The Firm is headquartered in New York, with offices in Washington, DC, Los Angeles, London, Frankfurt, Munich, Tokyo, Hong Kong and Singapore.