We’ve just received a press release from the Bermuda Stock Exchange announcing the listing of the notes issued by Lodestone Re Ltd. at the tail end of 2010. The $450m cat bond issued on behalf of Chartis provides them with cover against U.S. hurricanes and earthquakes. The press release from the BSX follows below.
BSX Approves Listing of Lodestone Re Ltd. Series 2010-2 Classes A-1 and A-2 Principal-At-Risk Variable Rate Notes Due 08 January 2014
Hamilton, Bermuda: 31 December 2010 – The Bermuda Stock Exchange (BSX) today announced the approval of the Listing of Lodestone Re Ltd. $125,000,000 Series 2010-2 Class A-1 Principal-At-Risk Variable Rate Notes due 08 January 2014 (Class A-1 Notes) and $325,000,000 Series 2010-2 Class A-2 Principal-At-Risk Variable Rate Notes due 08 January 2014 (Class A-2 Notes) pursuant to the Program under the Exchange’s Restricted Marketing provisions for Qualified Investors and Section V of the BSX Listing Regulations pertaining to International Issuers of Insurance Related Securities. The listing is effective as of 21 December 2010.
Lodestone Re Ltd., the Issuer, is a Special Purpose Insurer formed pursuant to the Bermuda Insurance Act, 1978, as amended. Lodestone Re Ltd. was incorporated in Bermuda as an exempted company on April 8, 2010 and has its registered office at Clarendon House, 2 Church Street, Hamilton, Bermuda.
The purpose of the Offering of the Notes is to obtain capital to deposit into the Collateral Account to provide the Issuer with funds to support its obligations under the Reinsurance Agreements with the Ceding Insurer, under the Class A-1 Reinsurance Agreement and the Class A-2 Reinsurance Agreement.
The $125,000,000 Series 2010-2 Class A-1 Notes due 08 January 2014 and the $325,000,000 Series 2010-2 Class A-2 Notes due 08 January 2014 are exposed to loss events, as specified in the offering circular and the offering circular supplement.
The Ceding Insurer is National Union Fire Insurance Company of Pittsburgh, Pa., a Chartis company.
First Bermuda Securities Limited sponsored the listing of the Lodestone Re Ltd. Principal-at-Risk Variable Rate Program and the Notes.
James McKirdy, Chief Compliance Officer of the BSX stated, “We are delighted to welcome Lodestone Re Ltd. Principal-at-Risk Variable Rate Program and the Series 2010-2 Classes A-1 and A-2 Principal-At-Risk Variable Rate Notes Due 08 January 2014 to the Official List of the BSX. The BSX Listing Regulations for International Issuers of Insurance Related Securities are specifically designed to facilitate the listing of Notes that are offered to institutional and sophisticated Qualified Investors”. Mr. McKirdy continued, “This is another Bermuda domiciled insurer that has taken advantage of the Exchange’s Listing Regulations for Insurance Related Securities and we are extremely pleased to be working with Lodestone Re Ltd.”
Michael Schroter of First Bermuda Securities Ltd. noted, “It has been a pleasure to assist in bringing another listing of this type to the Bermuda Stock Exchange. The co-operation and assistance of the BSX Officers again made it a very smooth exercise.”