Hudson Structured was lead investor in $45.5m Catalina private debt transaction

Hudson Structured Capital Management (HSCM) acted as a lead investor in the recent $45.5 million private debt arrangement for Catalina General Insurance, a subsidiary of Catalina Holdings (Bermuda), the company has revealed.

Funds managed by the investment manager, of which Michael Millette is the managing partner, purchased nearly half of Catalina’s placement of the $45.5 million in ten-year floating rate subordinated notes. The HSCM Bermuda team also worked directly with Catalina to structure the transaction.

The private debt linked notes are Tier 2 capital-eligible and increase Catalina’s statutory capital. The proceeds of the issuance will enhance the efficiency of Catalina’s capital structure, and fund its growth.

Catalina is a specialist in the legacy reserve reinsurance business. It is backed by Caisse De Depot et Placement Du Quebec, funds managed by Apollo Global Management, and Ontario Teachers’ Pension Plan Board.

Rachel Bardon, managing director of HSCM Bermuda, said: “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.”

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.”

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