US – GC Securities completes Cat Bond Tar Heel Re Ltd. Series 2013-1 Notes for the State of North Carolina???s Windpool

GC Securities announced the placement of the Series 2013-1 Notes, with notional principal at USD 500,000,000, through a newly formed catastrophe bond shelf program, Tar Heel Re Ltd., to benefit the North Carolina Joint Underwriting Association and the North Carolina Insurance Underwriting Association (collectively, the NCJUA/ NCIUA). This is the fourth time that the NCJUA/NCIUA has utilised the cat bond market to manage its tropical cyclone risks and the first time that an annual aggregate structure was utilised.

The new bonds will sit below the existing USD 201.835 million per occurrence Series 2011-1 Class A and B Notes issued in 2011 from the NCJUA/ NCIUA’s prior cat bond facility, Johnston Re Ltd. Collectively, the NCJUA/NCIUA will have USD 701.835 million of catastrophe bond protection outstanding for the 2013 hurricane season.

GC Securities served as lead structurer, sole bookrunner and co-lead manager.

Glenn Hahn, chairman of the NCJUA/ NCIUA and member company board representative, fire operations manager of State Farm said: “The Board is pleased with the capital markets’ receptivity to a fourth NCJUA/NCIUA cat bond issuance. This transaction, which employs an annual aggregate structure with an expanded definition of Named Storm, as well as advance reimbursement provisions, provides our Associations with enhanced coverage and improved postevent cash flow at a competitive price.”