Travers Smith LLP has advised Nortel Networks UK Pensions Trust Ltd (“the Trustee”) on a £2.4 billion buy-out for the Nortel Networks UK Pension Plan ("The Plan") with Legal & General (L&G").
The buy-out covers around 15,500 pensioner members and 7,225 deferred members and allows the Plan to exit its 10 year Pension Protection Fund (PPF) assessment period with surplus to enhance benefits.
The Travers Smith team advising the Trustee was led by Partners Dan Naylor and Susie Daykin. The team also included Partner Peter Hughes and Senior Associates Chris Widdison and Joe Wren.
Dan Naylor, who also advised in relation to the ground-breaking TRW buy-out, commented: “The Trustee had a very clear objective of maximising the options and benefits available to members after a long period of uncertainty. Achieving that objective was extremely complicated and required innovative solutions. The outcome is something that the Trustee can be very proud of and we are delighted to have contributed to the team effort required to deliver the project.”
Susie Daykin, who advised the Lehman Trustees on their buy-out, added: “It was great to advise on another major de-risking project, the largest ever PPF plus buy-out. The transaction further demonstrates Travers Smith's credentials in relation to bespoke de-risking deals.”