FWP 1 d34870dfwp.htm FWP FWP
Supplementing the Preliminary Prospectus    Filed Pursuant to Rule 433
Supplement dated October 23, 2015    Registration Statement No. 333-207570
(To Prospectus dated October 23, 2015)    and 333-207570-03

$5,300,000,000

ACE INA Holdings Inc.

$1,300,000,000 2.300% Senior Notes due 2020

$1,000,000,000 2.875% Senior Notes due 2022

$1,500,000,000 3.350% Senior Notes due 2026

$1,500,000,000 4.350% Senior Notes due 2045

Each Fully and Unconditionally Guaranteed by

ACE Limited

Pricing Term Sheet

October 27, 2015

 

Issuer:    ACE INA Holdings Inc. (“ACE INA”)
Guarantor:    ACE Limited
Ratings (Moody’s / S&P / Fitch):*    A3 (stable) / A (negative) / A (stable)
Security Type:    Senior Unsecured Notes
Description of Securities:    2.300% Senior Notes due 2020 (the “2020 Notes”)
   2.875% Senior Notes due 2022 (the “2022 Notes”)
   3.350% Senior Notes due 2026 (the “2026 Notes”)
   4.350% Senior Notes due 2045 (the “2045 Notes” and, together with the 2020
   Notes, the 2022 Notes and the 2026 Notes, the “Notes”)
Pricing Date:    October 27, 2015
Settlement Date:    November 3, 2015 (T+5)
Maturity Date:    2020 Notes: November 3, 2020
   2022 Notes: November 3, 2022
   2026 Notes: May 3, 2026
   2045 Notes: November 3, 2045
Principal Amount:    2020 Notes: $1,300,000,000
   2022 Notes: $1,000,000,000
   2026 Notes: $1,500,000,000
   2045 Notes: $1,500,000,000
Public Offering Price:    2020 Notes: 99.944%
   2022 Notes: 99.874%
   2026 Notes: 99.693%
   2045 Notes: 99.750%
Coupon (Interest Rate):    2020 Notes: 2.300% per year
   2022 Notes: 2.875% per year
   2026 Notes: 3.350% per year
   2045 Notes: 4.350% per year
Interest Payment Dates:    2020 Notes: May 3 and November 3, beginning May 3, 2016
   2022 Notes: May 3 and November 3, beginning May 3, 2016
   2026 Notes: May 3 and November 3, beginning May 3, 2016
   2045 Notes: May 3 and November 3, beginning May 3, 2016
Benchmark Treasury:    2020 Notes: UST 1.375% due September 30, 2020
   2022 Notes: UST 1.750% due September 30, 2022
   2026 Notes: UST 2.000% due August 15, 2025
   2045 Notes: UST 3.000% due May 15, 2045


Benchmark Treasury Price / Yield:    2020 Notes: 100-02 / 1.362%
   2022 Notes: 100-01 / 1.745%
   2026 Notes: 99-22 / 2.035%
   2045 Notes: 102-21+ / 2.865%
Spread to Benchmark Treasury:    2020 Notes: +95 bps
   2022 Notes: +115 bps
   2026 Notes: +135 bps
   2045 Notes: +150 bps
Yield to Maturity:    2020 Notes: 2.312%
   2022 Notes: 2.895%
   2026 Notes: 3.385%
   2045 Notes: 4.365%
Optional Redemption:    In each case as described in the Preliminary Prospectus Supplement –
   2020 Notes:   

•       Make-Whole Call prior to October 3, 2020 (T + 15 bps)

     

•       Par Call on or after October 3, 2020

   2022 Notes:   

•       Make-Whole Call prior to September 3, 2022 (T + 20 bps)

     

•       Par Call on or after September 3, 2022

   2026 Notes:   

•       Make-Whole Call prior to February 3, 2026 (T + 20 bps)

     

•       Par Call on or after February 3, 2026

   2045 Notes:   

•       Make-Whole Call prior to May 3, 2045 (T + 25 bps)

     

•       Par Call on or after May 3, 2045

Special Mandatory Redemption:    As described in the Preliminary Prospectus Supplement, if the Chubb Merger (as defined in the Preliminary Prospectus Supplement) is not consummated on or prior to September 30, 2016 or the Merger Agreement (as defined in the Preliminary Prospectus Supplement) is terminated, special mandatory redemption at 101%.
CUSIP / ISIN:    2020 Notes: 00440EAT4 / US00440EAT47
   2022 Notes: 00440EAU1 / US00440EAU10
   2026 Notes: 00440EAV9 / US00440EAV92
   2045 Notes: 00440EAW7 / US00440EAW75
Joint Book-Running Managers:    Morgan Stanley & Co. LLC
   J.P. Morgan Securities LLC
   Citigroup Global Markets Inc.
Joint Lead Managers:    Mitsubishi UFJ Securities (USA), Inc.
   Wells Fargo Securities, LLC
Co-Managers:    ANZ Securities, Inc.
   Barclays Capital Inc.
   Merrill Lynch, Pierce, Fenner & Smith Incorporated
   Goldman, Sachs & Co.
   HSBC Securities (USA) Inc.
   ING Financial Markets LLC
   Lloyds Securities Inc.
   RBS Securities Inc.
   BNY Mellon Capital Markets, LLC
   Deutsche Bank Securities Inc.
   RBC Capital Markets, LLC
   Standard Chartered Bank
   BNP Paribas Securities Corp.
   Boenning & Scattergood, Inc.
   Credit Suisse Securities (USA) LLC
   Drexel Hamilton, LLC
   Lebenthal & Co., LLC
   Macquarie Capital (USA) Inc.
   UBS Securities LLC
   Williams Capital Group, L.P.


Ranking:   The 2020 Notes, the 2022 Notes, the 2026 Notes and the 2045 Notes will constitute four separate series of debt securities, will be senior unsecured obligations of ACE INA and will rank equally in right of payment with all of ACE INA’s other unsecured and unsubordinated indebtedness from time to time outstanding. The guarantee will be a senior unsecured obligation of ACE Limited and will rank equally in right of payment with all of ACE Limited’s other unsecured and unsubordinated indebtedness from time to time outstanding. The Notes will be structurally subordinated to all obligations of ACE INA’s subsidiaries, including claims with respect to trade payables. The guarantee will be structurally subordinated to all obligations of ACE Limited’s subsidiaries, including claims with respect to trade payables. At June 30, 2015, ACE INA and its subsidiaries had a total of approximately $6 billion of indebtedness outstanding (other than trade payables). On a pro forma basis, after giving effect to the sale of the Notes and the consummation of the Chubb Merger and the merger of Chubb with and into ACE INA, at June 30, 2015, ACE INA and its subsidiaries had a total of approximately $15.180 billion of indebtedness outstanding (other than trade payables). On a pro forma basis, after giving effect to the sale of the Notes and the consummation of the Chubb Merger, at June 30, 2015, ACE had approximately $15.732 billion of indebtedness (other than trade payables) outstanding on a consolidated basis, all of which would be structurally senior to ACE Limited’s guarantee of the Notes.

 

 

* Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

The issuer and the guarantor have filed a registration statement (including a prospectus) with the SEC for the offerings to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer or the guarantor has filed with the SEC for more complete information about the issuer, the guarantor and these offerings. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in these offerings will arrange to send you the prospectus if you request it by calling Morgan Stanley & Co. LLC at 1-866-718-1649, J.P. Morgan Securities LLC at 1-212-834-4533 or Citigroup Global Markets Inc. at 1-800-831-9146.