Milbank LLP represented financial technology company Capitolis in connection with the private placement issuance of $220 million in AA+ rated medium term notes (“MTNs”) secured by equity interests in Capitolis’ registered security-based swap dealer, Capitolis Liquid Global Markets LLC (“CLGM”).
Ionic MTN Funding LLC, a newly formed special purpose vehicle, issued the MTNs, which were used to make an equity investment in CLGM. The proceeds were used by CLGM to purchase US treasuries to satisfy regulatory capital requirements. CLGM, which is the only special purpose vehicle registered as a security-based swap dealer, will continue to grow its “Ionic” program, which provides equity exposure to counterparties through equity total return swaps and issues commercial paper to purchase the underlying equities in a fully offsetting manner.
The Milbank team was led by Alternative Investments and Derivatives practice partner John Williams, senior associate Ben Kastner and associate Jessica Miller.
