HSCM backs $150m credit facility for White Mountains’ HG Global

HSCM backs $150m credit facility for White Mountains’ HG Global

HSCM Bermuda, the reinsurance and ILS related investment arm of investment manager Hudson Structured Capital Management Ltd., has participated in the provision of a new term loan credit facility for White Mountains bond insurer platform HG Global Ltd.

hudson-structured-capital-management-logoWhite Mountains Insurance Group announced yesterday that HG Global Ltd. has closed on the $150 million, 10-year term loan credit facility.

The backers of the credit facility are reinsurance investor Hudson Structured Capital Management Ltd, (operating as HSCM Bermuda) and also Security Benefit Life Insurance Company.

The proceeds of the loan are expected to be received by HG Global on or prior to May 31st 2022.

A significant proportion of the term loan are going to be utilised to pay a $120 million dividend to White Mountains Insurance Group, Ltd. and to other equity holders of HG.

The term loan facility received an investment grade rating of BBB from Kroll Bond Rating Agency, LLC, White Mountains explained.

Also adding that the new loan facility does not impact the reinsurance obligations of its HG Re Ltd. entity.

HG Global was launched by White Mountains Insurance Group back in 2012 as the platform that funds its Build America Mutual Assurance Company and provides reinsurance support for BAM’s municipal bond insurance underwriting book.

Hudson Structured, as well as investing in insurance-linked securities (ILS), reinsurance arrangements and other areas of the insurance market chain such as debt for its funds and investors, is also focused on insurtech investments, investments in tech-focused insurance carriers and distribution modernisation plays.

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