Mayer Brown represented the issuer in connection with a $200 million catastrophe bond offering to fund insurance for New York’s Metropolitan Transportation Authority (MTA) covering losses in the event of a storm featuring destructive storm surges, similar to those experienced during Superstorm Sandy in 2012. The MTA is North America’s largest transportation network, serving approximately 15.1 million people in New York and Connecticut.

The transaction marks the first time that the MTA has accessed the capital markets to manage its property damage risks, and it is the first-ever catastrophe bond issued to protect solely against storm surge. The catastrophe bonds were offered in a private offering under Rule 144A and were issued by MetroCat Re Ltd., a special purpose insurer. GC Securities, a division of MMC Securities Corp and a member of Marsh and McLennan Companies, and Goldman, Sachs and Co., were the initial purchasers in the private offering. RMS developed the risk modelling analysis for the transaction.

Lawyers from Mayer Brown’s global Insurance Industry Group advised on the transaction, which included: New York – partners Stephen Rooney and Richard Spitzer and associates Richard Pan and Tareah Ikharo; Chicago – partner George Craven and associate Steven Garden; and London – partner Stephen Walsh and associate Angeli Sunmonu.