Twelve Capital in $30m private debt deal for United, placed by BMS

by Artemis on December 6, 2016

Zurich and London-based insurance and reinsurance linked investment manager Twelve Capital has invested in a $30 million private debt issuance from United Insurance Holdings and placed by BMS Capital Advisory, Inc.

The $30 million private placement of senior notes issued by insurer United Insurance Holdings Corp.(UPC Insurance) has been invested in by funds managed by Twelve Capital Group, AG.

BMS Capital Advisory, which specialises in capital markets related insurance and reinsurance transaction arrangement and placing, facilitated the debt issuance, helping United to source funding from the insurance-linked securities (ILS) investment market. ILS fund manager Twelve Capital operates an insurance private debt investment strategy, as well as dedicated ILS and reinsurance linked investment funds and mandates.

Romulo Braga, CEO of BMS Capital Advisory, commented on the debt placement; “We are pleased to have facilitated this successful issuance between a company primarily focused on financial stability for its policyholders and a dynamic source of capital, actively working to respond to the demands of the marketplace and providing flexible capital solutions.”

The private placement senior debt floating rate notes have a ten-year term and will bear interest at three-month LIBOR plus 5.75% per year, paying interest quarterly in arrears. The notes can be redeemed at par value at any time without a pre-payment penalty.

“We’re pleased to be able to put this capital in place,” commented John Forney, President and Chief Executive Officer of UPC Insurance. “It is an efficient and cost effective way for us to continue to support our company’s ongoing organic growth while maintaining conservative operating and financial leverage ratios.”

John Butler, Head of Investment Management at Twelve Capital, added; “Our Private Debt offering supports insurance companies in their quest to grow, strengthen and establish a more efficient capital base, and we are proud that UPC Insurance and BMS have chosen us as their partner for this transaction.”

“There is substantial potential for debt solutions for small- and mid-cap insurers, and this transaction is a prime example of the types of financing capacity that can be provided by Twelve Capital,” he added.

The proceeds raised from the sale of the debt offering to Twelve Capital will be primarily used by UPC Insurance for general corporate needs and to support the insurers ongoing growth.

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