Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Scottish Re Gets Capital Infusion

By Jim Connolly

X
Your article was successfully shared with the contacts you provided.

Scottish Re Group Ltd. has completed a previously announced effort to sell $600 million in stock to a pair of major investors.

The buyers, who now have a controlling stake in Scottish Re, are MassMutual Capital Partners L.L.C., an affiliate of Massachusetts Mutual Life Insurance Company, Springfield, Mass., and a group of affiliates of Cerberus Capital Management L.P., New York, a private investment firm.

Scottish Re is one of the largest U.S. life reinsurers.

Rating agencies are welcoming news that the stock sale has been completed.

Standard & Poor’s Ratings Services, New York, raised the counterparty credit rating on Scottish Re, Hamilton, Bermuda,, to B plus, from B, and removed the company from CreditWatch with developing implications. S&P also raised the counterparty credit and financial strength ratings on Scottish Re’s operating companies as well as its ratings on dependent unwrapped securitized deals to BB plus, from BB, and removed those ratings from CreditWatch developing.

The outlook on Scottish Re and its operating companies is developing, according to S&P.

On Nov. 27, Scottish Re announced the agreement, which was considered essential to providing the liquidity necessary to keep the struggling company in business.

In return for the $300 million stake made by both MassMutual and Cerberus, the 2 entities received 1 million newly issued convertible preferred shares that can be converted into 150 million ordinary shares of Scottish Re at any time.

MassMutual and Cerberus now own almost 69% of the voting power of Scottish Re shareholders.

As part of the transaction, Scottish Re’s board of directors has been expanded to 11 members.

Scottish Re says it will continue to operate under its current structure and to trade on the New York Stock Exchange under the ticker “SCT.”

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.