IPO Profile

Primus Guaranty
360 Madison Avenue, 23rd Floor, New York, New York 10017
Tel: 212-697-2227
Web:
Ticker: PRS
Stock Exchange: New York Stock Exchange
Shares Issued: 10,300,000.00
Price Offered: $13.50
Amount Raised: $139,050,000.00

Underwriters:
Lehman Brothers
Morgan Stanley & Co.
CS First Boston
UBS Investment Bank
William Blair

Company Description:
Our principal business is selling credit protection under which we assume the risk of default on investment grade credit obligations. The protection we sell takes the form of a credit default swap, or credit swap. In exchange for a fixed quarterly premium we agree, upon a default or other credit event affecting a designated issuer, or Reference Entity, to pay a counterparty an agreed amount, or notional amount, against delivery of the Reference Entity's debt obligation. Credit swaps are an efficient and standardized mechanism to reduce credit risk exposure arising from the ownership of financial obligations such as bonds, loans and receivables. The primary purchasers of credit swaps are commercial and investment banks as well as credit portfolio managers, insurance companies and other financial institutions.