XL prices $1bn of debt to fund acquisition

XL Group has priced $1 billion of debt to help fund its acquisition of Bermuda-based Catlin.

Through its subsidiary XLIT, XL has priced a public offering of $500 million subordinated notes at 4.5 percent (due 2025), while pricing another $500 million at 5.5 percent (due 2015).

XL expects to receive net proceeds from this offering of approximately $980.6 million, after deducting underwriting discounts and estimated offering expenses.

The joint book-running managers for the offering are Morgan Stanley & Co, Goldman Sachs, Citigroup Global Markets and Deutsche Bank Securities.