(Bloomberg) -- Ace Ltd. is said to be planning to sell $5.3 billion in bonds to finance its acquisition of Chubb Corp.
The longest portion, a 30-year bond, may yield as much as 1.70 percentage points more than comparable government securities, according to a person with knowledge of the deal. The debt sale, to help close a deal valued at about $30 billion, will be issued in as many as four parts, the company said in an Oct. 23 filing.
The deal, announced in July, will be paid with roughly half in stock and the rest in cash and debt. Ace, led by Chief Executive Officer Evan Greenberg, forecast annual savings of about $650 million by the third year after closing. The deal will help the Zurich-based company to compete against rivals such as American International Group Inc. and Allianz SE.
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