Hamilton, Bermuda-based insurer ACE Limited said it plans to raise $300 million from the sale of senior notes, which will provide part of the purchase price for Combined Insurance Company of America.
The acquisition is expected to be closed in the first half of this year.
Combined Insurance deals in personal accident and supplemental health insurance. ACE agreed to purchase the firm from insurance broker Aon Corp. in December for $2.4 billion in cash.
Moody's Rating Service issued the bond an "A3″ rating with a stable outlook. Standard & Poor's issued a debt rating of "A-minus" on Thursday evening.
The bonds will become due on 2018 and are guaranteed unconditionally by ACE.
(This story was updated on Feb. 8 at 9:51 a.m.)
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