Insurance and reinsurance investment specialist Hudson Structured Capital Management has acted as a lead investor in the recently completed $45.5 million private debt transaction issued for Catalina General Insurance Ltd., a subsidiary of Catalina Holdings (Bermuda) Ltd.
Almost half the $45.5 million of ten-year floating rate subordinated notes were purchased by funds under management at Hudson Structured Capital Management, the ILS, re/insurance and transportation finance investment firm established by ex-Goldman Sachs structured finance head Mike Millette.
The private debt linked notes are Tier 2 capital-eligible and serve to increase and enhance Catalina’s statutory capital, with the proceeds of the deal aimed at increasing the efficiency of Catalina’s capital structure and providing capital to fund further growth.
Hudson Structured’s team worked directly with Catalina to structure the transaction, as well as with ILS investment manager Twelve Capital who also took part in this debt arrangement as the other participating investor.
Rachel Bardon, Managing Director of HSCM Bermuda, commented on the transaction; “We are pleased to complete this investment in the Bermuda business of Catalina. We provided support to Catalina in the course of their regulatory review process in Bermuda which was completed successfully.”
Michael Millette, Managing Partner of Hudson Structured, added; “Catalina has been a leader in the legacy casualty sector, and we have admired the company’s discipline and results for years. We are pleased that Catalina has chosen Hudson Structured as a partner for this transaction.”
Hudson Structured invests across the risk return spectrum in all instruments available through insurance and reinsurance markets.
Millette told Artemis that his firm “Enjoyed collaborating with Twelve Capital in arranging this deal for Catalina.”
Hudson Structures sees legacy and run-off business as one of the attractive areas of insurance and reinsurance right now, hence providing the backing for this private debt deal for legacy specialist Catalina fits its strategy and enables it to benefit from returns linked to Catalina’s business prowess.
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