Willis Unit Helps $100M Note Offering

Willis brokerage said its Capital Markets unit has acted as co-lead manager with Lehman Brothers financial services firm in a $100 million notes offering that will collateralize a reinsurance agreement.

The London-based Willis said the notes were issued by Ajax Re Limited as part of a $1 billion shelf program to provide reinsurance protection to Aspen Insurance Limited for California earthquake events. Lehman Brothers acted as sole initial purchaser and bookrunner for the deal.

Proceeds of the notes collateralize a reinsurance agreement between Ajax Re Limited and Aspen, Willis said. Loss payments under the reinsurance agreement are triggered by estimated insured property losses as reported by Property Claims Services.

The notes, which were rated "BB" by Standard & Poor's and "b+" by AM Best, have a coupon of Libor +625 basis points. The notes mature on May 9, 2009.

The program, Willis said, allows Ajax Re to issue further series of notes to provide Aspen with up to $1 billion of protection, in respect of any perils, at any given time.

Mark Hvidsten, Willis Capital Markets chief executive officer, said the transaction "provides Aspen with catastrophe reinsurance at attractive terms."

Willis Capital Markets specializes in the structuring and placement of financial instruments that access risk capital from outside the traditional insurance and reinsurance markets.