NU Online News Service, Jan. 13, 2005, 6:11 p.m. EST
Scottish Re Group Ltd., Hamilton, Bermuda, has completed a deal that could give it quick access to extra cash.[@@]
The life reinsurer has sold $325 million in “collateral facility securities” through a private placement.
The securities give a Scottish Re subsidiary, Scottish Annuity & Life Insurance Company (Cayman) Ltd., the ability to issue funding agreements at a pre-determined price, without any conditions and at any time, in exchange for a portfolio of highly rated, 30-day commercial paper.
The deal ends in 2015.
The deal protects Scottish Annuity’s ability to raise $325 million without having to worry about capital market or execution risk, and the deal also means that Scottish Annuity can use eligible assets as collateral in its reinsurance business, the executives say.