XL Group plc is selling $1 billion of debt to help to fund its acquisition of Bermuda-based insurer Catlin Group Ltd.

The company yesterday priced two separate offerings of subordinated notes, both of which are due in 2045.

The first offering of $500 million is priced at 4.45 per cent, while the second $500 million offering is priced at 5.5 per cent.

XL expects net proceeds from the offering of $980.6 million, which will finance in part the payment of the cash portion of the Catlin takeover deal, the global business insurer said today.

The joint book-running managers for the offering are Morgan Stanley, Goldman Sachs, Citigroup Global Markets, Deutsche Bank Securities and HSBC Securities (USA).