Proposed Capital Raise

RNS Number : 0316F

CATCo Reinsurance Opps Fund Ltd

15 May 2017

 

FOR IMMEDIATE RELEASE

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION, RELEASE, OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN, OR INTO, THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL OR TO U.S. PERSONS. THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE OR FORM PART OF ANY OFFER TO ISSUE OR SELL, OR ANY SOLICITATION OF ANY OFFER TO SUBSCRIBE OR PURCHASE, ANY INVESTMENTS IN ANY JURISDICTION.

15 May 2017

CATCo Reinsurance Opportunities Fund Ltd. (the "Company")

Proposed Capital Raise

The Company today announces that the Board and Markel CATCo Investment Management Ltd. ("Markel CATCo"), the Company's investment manager, both believe that the Company remains appropriately positioned to continue to deliver attractive returns through its focused investment strategy.

Following recent discussions held between Markel CATCo and existing and potential new reinsurance counterparties regarding a number of mid-year opportunities, Markel CATCo intends to raise further funds to satisfy this demand via the Markel CATCo Diversified Fund (a segregated account of Markel CATCo Reinsurance Fund Ltd), in which the Company invests substantially all of its assets (the "Master Fund").  

These further opportunities will allow Markel CATCo to continue to diversify the Master Fund's portfolio, while maintaining the indicative maximum net return profile of approximately 16% on invested capital (inclusive of the 2% attritional loss reserve).

The Board and Markel CATCo believe that it is appropriate to offer this opportunity to investors in the Company, in response to continued demand from both current shareholders and new investors. Proceeds of the fundraise will be used to meet a proportion of the demand from new investors.

Any new Ordinary Shares ("New Shares") issued under the proposed capital raise will be issued at a premium of 2% to the unaudited net asset value ("NAV") per share as at 30 April 2017, which will be announced on 16 May 2017.

How to participate

Qualified investors (as defined in section 86(7) of the Financial Services and Markets Act 2000 (as amended)) are invited to apply for New Shares by contacting Numis Securities Limited ("Numis") using the contact details below. The decision to allot New Shares to any qualified investor shall be at the absolute discretion of the Company and Numis. 

Expected timetable

Fund raise opens	17 May 2017
Latest time and date for receipt of commitments under the issuance	Noon 25 May 2017
Announcement of results of issuance	7.00 a.m. 26 May 2017
Admission and dealings in New Shares on the Specialist Fund Segment of the London Stock Exchange's Main Market	8.00 a.m. 31 May 2017

Ends

For further information:

Judith Wynne
General Counsel
Markel CATCo Investment Management Ltd.

Telephone: [phone]

Email: [e-mail]

Mark Way
Chief Operating Officer
Markel CATCo Investment Management Ltd. 

Telephone: [phone]

Email: [e-mail]

Numis Securities Limited

Hugh Jonathan / Chris Gook

Telephone: [phone]

Important notice

This Announcement contains Inside Information as defined under the Market Abuse Regulation (EU) No. 596/2014.

This Announcement has been issued by and is the sole responsibility of the Company.

No representation or warranty express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Numis or by any of its respective affiliates or agents as to or in relation to, the accuracy or completeness of this Announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

Neither this Announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction.

This Announcement and the information contained herein is not for publication, release or distribution, directly or indirectly, in or into the United States, Australia, Canada, Japan or South Africa or any jurisdiction in which the same would be unlawful. This Announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire shares in the capital of the Company.

Shares in the Company have not been, or will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") or with any securities regulatory authority of any State or other jurisdiction of the United States, and accordingly may not be offered, sold or transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, registration under the Securities Act. No offering of the New Shares is being made in the United States or to U.S. persons as defined in and in accordance with Regulation S under the Securities Act. The Company has not been and will not be registered under the U.S. Investment Company Act of 1940, as amended and investors will not be entitled to the benefits of that Act.

Numis, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting for the Company and is acting for no-one else in connection with the issue and will not be responsible to anyone other than the Company for providing the protections afforded to its clients nor for providing advice in relation to the proposed issue or any other matter referred to herein. To the fullest extent permitted by law recipients agree that Numis shall not have any liability (direct or indirect) for or in connection with this Announcement or any matters arising out of or in connection herewith. Numis has not authorised the contents of, or any part of, this document.

This Announcement is for information purposes only and does not constitute an invitation to subscribe for or otherwise acquire or dispose of securities in the Company in any jurisdiction. The information contained in this Announcement is for background purposes only and does not purport to be full or complete. This Announcement does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe or purchase, any investments in any jurisdiction nor shall it (or the fact of its distribution) form the basis of, or be relied on in connection with, any contract therefor.

 

END

 

 

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