Zurich Insurance Co. is marketing an as-yet unsized transaction called Willow No.2 (Ireland) that repackages subordinated notes issued by the Swiss multi-line insurer, according to a Standard & Poor's presale report.

Repacks, sometimes also called “structured notes,” are securitizations of general obligation bonds issued by the deal’s sponsor. The transactions are set up to allow interest payments on the senior notes to be made without having to pay withholding tax, according to S&P.

In the case of Zurich’s transaction, Willow “will issue the repack notes on the closing date, and use the issuance proceeds to purchase the subordinated notes,” the presale report states. “Willow passes through (to the repack notes) any interest payments and any redemption payments it receives from the subordinated notes.” The transaction is expected to close this month.

Barclays Bank is the lead manager.

The trust is marketing ‘A’ rated securities due October 2045 that are supported by a tranche of 'A' rated subordinate notes. The ratings on the notes are linked to Zurich's 'AA-'/Positive/'A-1+' rating.  

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