12 January 2018Insurance

Twelve Capital reveals details of recent private debt deals

Investment manager Twelve Capital has revealed details of some of the recent private debt deals it has completed for insurers.

In December 2017 alone, it invested $67 million in three bilateral private debt transactions. These comprised a $15 million deal with ACCC Holding Corporation, $25 million for Federated National Holding Company and $27 million for a commercial US-based insurer for small to medium sized businesses.

The Federated National Holding Company deal took the form of Senior Unsecured Floating Rate Notes for a ten-year period. Twelve Capital Group acted as the sole investor in the note offering arranged by Aon Securities.

Federated National Insurance intends to use the net proceeds from the sale of the notes for the previously announced purchase of interests in Monarch Delaware Holdings held by the Company’s joint venture partners, general corporate purposes including capital management of subsidiaries and to repurchase shares of the Company’s common stock.

It also said that an additional five-year tranche of $20 million was placed on 2 January 2018 with a different investor.

The ACCC Holding Corporation deal took the form of Senior Unsecured Floating Rate Notes for a ten-year period. Twelve Capital Group again acted as the sole investor in the note offering. Dowling & Hales, through its affiliate, Hales Securities, acted as exclusive financial adviser to ACCC on the transaction. The proceeds will increase the ACCC Insurance’s statutory capital and support the strategic development of the company.

Daniel Grieger, head of private debt at Twelve Capital, said: “Twelve Capital’s ability to invest across the balance sheet of insurance companies enables us to support insurance companies with their strategic development in a wide range of situations. We are proud that ACCC Insurance, Federated National Insurance and Commercial Insurance have chosen us as their preferred partner to raise capital.”

Ulrich Beck, executive director, leading Twelve Capital’s sourcing of Private Debt transactions in Europe & North America, added: “Twelve Capital Group’s private debt offering supports insurance companies in Europe and North America in their quest to grow, strengthen and establish a strong & efficient capital base. We are pleased to have been introduced to the aforementioned insurance companies by intermediaries including Aon Securities and Dowling & Hales, who, along with many other major intermediaries, work closely with us around our Private Debt investments.”

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