New Issue: Scottish Re upsized $125 million mandatory convertible yields 5.875%, up 22%

Nashville, Dec. 12 - Scottish Re Group Ltd. sold an upsized $125 million of three-year non-callable mandatory convertibles at par of 25 to yield 5.875% with a 22% initial conversion premium via sole bookrunner Bear Stearns & Co. Inc.

The deal, boosted from $115 million, sold at the aggressive end of price talk of 5.875% to 6.375%, up 18% to 22%.

The mandatory convertible is in the Hybrid Capital Units structure with a convertible preferred share that matures May 21, 2007 attached to each unit.

Terms of the deal are:

Issuer:	Scottish Re Group Ltd.
Issue:	Hybrid Capital Units
Bookrunner:	Bear Stearns & Co. Inc.
Joint lead managers:	UBS Investment Bank and JPMorgan Securities
Amount:	$125 million, upped from $115 million
Greenshoe:	$18.75 million
Maturity:	Feb. 15, 2007
Coupon:	5.875%
Price:	Par, $25
Yield:	5.875%
Conversion premium:	22%
Conversion price:	$23.57
Conversion ratio:	1.0607
Call:	Non-callable
Rating:	S&P: BB
Price talk:	5.875-6.375%, up 18-22%
Pricing date:	Dec. 11, after the close
Settlement date:	Dec. 17
Distribution:	Registered

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