Experience

Reinsurance Sidecar Transaction

Cyrus Reinsurance Holdings

Chadbourne represented Cyrus Reinsurance Holdings SPC and Cyrus Reinsurance Ltd. (Cyrus Re), along with their hedge-fund sponsor, in connection with their formation, private-placement capitalization, and reinsurance agreement negotiation as part of a reinsurance "sidecar" transaction. Cyrus Re was the first post-Katrina sidecar to be capitalized, the first to employ leverage, and the first Moody's-rated sidecar. Cyrus Re raised $544 million of capital to provide capacity to certain insurance subsidiaries in the XL Capital group by way of a quota-share reinsurance agreement. After Cyrus Re successfully participated in the 2006 underwriting year, Chadbourne represented Cyrus Re in obtaining an additional $170 million in debt capitalization, and in negotiating and drafting corresponding amendments to its quota-share reinsurance agreement.