Liberty Mutual in $1.25 Billion Contingent Capital Facility

Cleary Gottlieb represented Liberty Mutual Group Inc. (Liberty Mutual) and its parent holding company guarantors in an offering of $1.25 billion of pre-capitalized trust securities redeemable August 15, 2054 (the P-Caps), by Beacon Funding Trust (the Trust).

The offering priced on October 29, 2024, and settled on November 5, 2024.

The Trust will invest the proceeds of the P-Caps sale into a portfolio of U.S. Treasury strips and enter into a facility agreement with Liberty Mutual. Under this agreement, Liberty Mutual may issue up to $1.25 billion of its unsecured 6.266% senior notes due August 15, 2054, to the Trust in exchange for an equal amount of Treasuries. The P-Caps were offered under Rule 144A and are expected to rate the same as Liberty Mutual’s senior debt is by S&P and Moody’s.

Liberty Mutual, together with its affiliates, is one of the largest property and casualty insurers in the U.S., and a diversified global insurer that offers a wide range of insurance products and services.