Eclipse Re Ltd., the Horseshoe Group and Rewire Securities LLC operated private syndicated collateralized reinsurance note platform, has issued its largest private ILS or catastrophe bond deal to-date, with a $53.3 million Eclipse Re Ltd. (Series 2017-02A) transaction.
ILS management, servicing, transformation and fronting specialist Horseshoe Group and boutique insurance investment banking specialists Rewire Securities launched the Eclipse Re Ltd. platform as a way for collateralized reinsurance transactions to be swiftly and easily transformed, securitized, marketed and placed with investors as private ILS or cat bond notes with secondary liquidity features.
The first Eclipse Re issuance saw a $20 million Eclipse Re Ltd. (Series 2017-01A) single tranche deal covering a two-year term collateralized reinsurance arrangement.
This new transaction sees three tranches of Series 2017-02A notes issued, totaling $53.3 million and with each tranche corresponding to a single segregated account, likely with a reinsurance contract within each.
The first is a $4.8 million Series 2017-02A Notes – SAC EC0003 tranche. The second, a $10.5 million Series 2017-02A Notes – SAC EC0004 tranche. Finally, the largest is a $38 million Series 2017-02A Notes – SAC EC0005 tranche.
All three tranches of notes issued by Eclipse Re Ltd. have been admitted for listing on the Bermuda Stock Exchange (BSX) as Insurance Related Securities.
The maturity date is set as the 1st July 2018, suggesting the transaction collateralizes a reinsurance arrangement covering just over one year, so likely transacted for the mid-year renewals.
The $53.3 million of Eclipse Re 2017-02A notes were privately placed with qualified investors, with we presume Rewire Securities acting as the bookrunner for the transaction.
Horseshoe Group acted as the listing sponsor, through its Horseshoe Corporate Services entity.
The Eclipse Re platform offers an efficient alternative for cedents or investors looking for ways and platforms to issue private catastrophe bond transactions and to transform collateralized reinsurance into something more liquid and tradable.
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