Twelve Capital leads $45.5m private debt transaction for Catalina

by Artemis on May 10, 2017

Insurance and reinsurance linked investment management firm Twelve Capital has acted as the lead investor in a $45.5 million private debt arrangement for Catalina General Insurance Ltd., a subsidiary of Catalina Holdings (Bermuda) Ltd.

The transaction saw Twelve Capital Group acting as the majority investor, on behalf of its investors, in Catalina’s placement of the $45.5 million of ten-year floating rate subordinated notes.

The private debt linked notes have full Tier 2 capital eligibility and will be used to increase Catalina’s statutory capital. The proceeds of the issuance of the private debt will be used by Catalina to enhance the strength and efficiency of its capital structure, as well as to fund ongoing growth.

Catalina is a specialist in the acquisition and ongoing management of insurance and reinsurance companies or portfolios in run-off and is backed by institutional shareholders Caisse De Depot et Placement Du Quebec, funds managed by Apollo Global Management, LLC, and Ontario Teachers’ Pension Plan Board.

Twelve Capital invests across the risk and return spectrum in insurance and reinsurance markets, with assets under management ranging from catastrophe bonds, other insurance-linked securities (ILS) and collateralized reinsurance, to private insurance debt, and also insurance or reinsurance equities.

John Butler, CEO Twelve Capital (UK) Ltd. & a Managing Partner at the ILS manager, commented; “We are pleased that our offering around Private Debt is meeting the capital needs of high quality insurers as well as regulatory requirements in Bermuda, which is one of Twelve Capital Group’s target markets.”

Ulrich Beck, who leads Twelve Capital’s sourcing of private debt transactions across Europe, added; “Twelve Capital Group’s private debt offering supports insurance companies in their quest to strengthen and to create a more efficient capital base. We are proud that Catalina has chosen Twelve Capital as their partner for this transaction.”

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