Scottish Annuity & Life Insurance Company (Cayman) Ltd. is making a cash offer for a designated class of “collateral facility certificates.”

Scottish Annuity & Life is a unit of Scottish Re Group Ltd., Hamilton, Bermuda (Pink Sheets: SKRRF), a life reinsurer. In April, Jonathan Bloomer, the company’s chairman, said Scottish Re is moving forward with an orderly run-off.

Scottish Annuity says the new cash offer applies to collateral facility certificates, or “pass-through certificates,” that pay a rate of 5.902% and are associated with the Stingray Pass-Through Trust.

In 2005, a speaker at a symposium organized by the Society of Actuaries, Schaumburg, Ill., said Scottish Re had used the Stingray Pass-Through Trust to fund $325 million in Regulation Triple X term life reserving requirements.

The National Association of Insurance Commissioners, Kansas City, Mo., developed the Triple X standards in an effort to increase the odds that life insurers will be able to make good on obligations to term life policyholders and beneficiaries.

The collateral facility certificates are due Jan. 12, 2005, according to a report Scottish Re filed with the U.S. Securities and Exchange Commission in 2004.

Scottish Re recently arranged for the purchase of about $55.5 million in Stingray trust collateral facility certificates from institutional holders through “privately negotiated Stingray transactions,” Scottish Re says.

The institutions that sold the certificates agreed to let an interest rate swap related to the Stingray Pass-Through Trust be terminated, Scottish Re says.

The swap was terminated July 2, and the termination of the swap resulted in a $39.2 million termination payment by the swap counterparty to the Stingray Pass-Through Trust, Scottish Re says.

Holders of the collateral facility certificates will get to split the proceeds from the termination payment, Scottish Re says.

The institutions that sold the certificates Scottish Re bought also agreed to eliminate a deal covenant that prohibited Scottish Re from selling all or most of its assets without the acquirer assuming Scottish Re’s obligations, Scottish Re says.