Mayer Brown represents Amtrak on $275 million catastrophe bond for insurance protection against storm surge and other natural disasters
20 October 2015
Mayer Brown announced today that it represented Amtrak, the US intercity passenger rail service and high-speed rail operator, on the structuring and completion of a $275 million catastrophe bond offering which provides insurance protection against damage to Amtrak-owned infrastructure in the critical Northeast Corridor in the event of a natural disaster due to storm surge, wind damage or earthquake.
The transaction marks the first time Amtrak has used the capital markets as a source of insurance coverage. The catastrophe bonds were offered in a private offering under Rule 144A and were issued by PennUnion Re Ltd., a special purpose insurer based in Bermuda. Passenger Rail Insurance Liability, a Bermuda-based insurance company wholly-owned by Amtrak, entered into a reinsurance contract with PennUnion Re Ltd. to provide the catastrophe protection.
The Mayer Brown transaction team was led by partners Stephen Rooney and Richard Spitzer (both New York) and included partner George Craven (Chicago) and associates Steven Garden (Chicago), Daniel Scher and Meray Muney (both New York).