NU Online News Service, Jan. 3, 2005, 5:30 p.m. EST
The Cypress Group, New York, has invested $180 million in Scottish Re Group Ltd., Hamilton, Bermuda.[@@]
Scottish Re raised the money to support a newly acquired U.S. individual life reinsurance business. Scottish Re completed the acquisition of the business, from ING Groep N.V., Amsterdam, Dec. 31, 2004.
Cypress, a private equity firm, received 9.9% of Scottish Re’s ordinary common stock in exchange for its investment.
Cypress also received Class C warrants that could increase its ownership stake to 19.9% and about $41 million in 7% convertible junior subordinated notes.
The warrants and notes automatically convert if Scottish Re shareholders vote to change the company’s articles of association, Scottish Re says.
Cypress is now Scottish Re’s largest shareholder, Scottish Re says.
Cypress now has a director on the Scottish Re board and one non-voting observer on the board.
In December 2004, Scottish Re raised another $50 million by selling preferred trust securities.