A struggling life reinsurer today succeeded at meeting obligations to investors.
Scottish Re Group Ltd., Hamilton, Bermuda, says it has repurchased about $115 million in convertible notes.
The holders of the notes, which were paying an interest rate of 4.5%, had a legal right to make Scottish Re buy the notes today.
Scottish Re used financing arrangements announced Friday, including a credit agreement change that helped it get cash from one of its own subsidiaries, to buy the notes.
Only $8,000 of the 4.5% convertible notes were not put, and Scottish Re has started calling those notes so that it can retire the full issue, the company says.
Standard & Poor’s Ratings Services, New York, reacted to the news by increasing its counterparty credit rating on Scottish Re to B, from CCC.