Primus announces new swap tear-up

Primus has announced the latest of a series of deals in which it has reduced the size of the credit derivative portfolio underwritten by its Primus Financial Products vehicle. The credit derivative product company says the new deal involves $2.65 billion in notional of single name and tranche credit derivatives, and is with its biggest single counterparty. The contracts will be novated to a new entity, to which it paid an assignment fee of $100 million.

It says the single name exposures will be terminated. The CSOs will be restructured, with Primus paying the counterparty a fee of $10 million, the attachment points being increased, and the notional of the contracts reduced to $1.75 billion.