By Cristal Cody
Prospect News, Dec. 28 - Vecta I Ltd. sold C$120 million of 8% 6.25-year notes (/BBB+/), series 2011-1, according to an announcement on Tuesday from dealer Credit Agricole Securities (USA) Inc.
The notes were sold through private placement via the Rule 144A market.
Credit Agricole Securities and Swiss Re Capital Markets were the bookrunners.
The sale marks the first Canadian life insurance embedded value securitization to be issued. The deal is sponsored by Aurigen Reinsurance Ltd. and covers a closed block of policies reinsured by ARL between 2008 and 2010.
Embedded value life securitization transactions allow sponsors to realize the present value of future cash flows by releasing future profits from portfolios of in-force life reinsurance business.
Vecta 1 is a newly formed Hamilton, Bermuda-based special-purpose vehicle.
| Issuer: | Vecta I Ltd.
|
| Amount: | C$120 million
|
| Securities: | Life insurance embedded value securitization notes
|
| Maturity: | 6.25 years
|
| Coupon: | 8%
|
| Bookrunners: | Credit Agricole Securities (USA) Inc. and Swiss Re Capital Markets
|
| Pricing date: | Dec. 27
|
| Rating: | Standard & Poor's: BBB+
|
| Distribution: | Private placement, Rule 144A, Canada
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