Dewey & LeBoeuf has snared a lead role advising bond insurer MBIA on the separation of its public finance division.
MBIA relationship partner at Dewey Larry Larose advised on the group’s division, which will create a public finance company called National Public Finance Guarantee Corp. The new company will underwrite policies on public finance debt only.
The company’s structured finance and international business will continue to operate under the name MBIA.
Larose said: “It was a complicated deal that incorporated a lot of different practice groups. We pulled together a group from our corporate, insurance, restructuring and regulatory practice groups to advise on this.”
Dewey inherited MBIA as a client in 2006 when longstanding adviser Larose joined the firm from King & Spalding.
Larose added: “I’ve worked with MBIA for a long time now. The hope is that the firm will continue to advise both MBIA and the new company regularly and continue that relationship.”
New York-based insurance partners Jane Boisseau and Allison Tam both assisted Larose on the deal.
The aim of the deal is to create to distinct companies in the hope of improving liquidity in the public finance insurance market, helping borrowing costs to be lowered.