GC Securities, a division of MMC Securities Corp., has placed the Series 2011-1 Class A and B Notes with notional principal at $201.8 million through an existing catastrophe bond shelf program called Johnston Re Ltd.
The deal is for the benefit of the North Carolina Joint Underwriting Association (NCJUA) and the North Carolina Insurance Underwriting Association (NCIUA). This is the third consecutive year that the NCJUA and the NCIUA have used cat bonds to manage its hurricane risk.
The new bonds will sit alongside the dropdown layer from Johnston Re’s Series 2010 Class A Notes and alongside the static layer of Johnston Re’s Series 2010 Class B Notes, providing the NCJUA and NCIUA with a combined $506.8 million in catastrophe bond protection.
GC Securities served as sole bookrunner and co-lead manager on the transaction.