BMS Capital Advisory (BMS CA) announces the successful completion of a US$45m private placement of surplus notes issued by Brotherhood Mutual Insurance Company (Brotherhood) to funds managed by Dekania Capital Management, an indirect investment advisory subsidiary of Cohen & Company (NYSE American: COHN), with a specialist practice providing debt capital to small and mid-sized mutuals and insurers. The notes carry a fixed rate of 6.00% with a 20-year term. The proceeds of the offering will primarily be used by Brotherhood for general corporate purposes and to support the company’s growth. BMS CA acted as an exclusive financial advisor and placement agent to Brotherhood.
Matthew Hirschy, senior vice-president and treasurer at Brotherhood, said: “Brotherhood Mutual is excited about the issuance and placement of its surplus notes through BMS Capital Advisory. This allows us to continue to innovate and explore additional solutions to protect Christian ministries, schools, and colleges.”
Alex Orloff, managing director at BMS CA, added: “We are pleased to have secured a financing solution that reflects Brotherhood’s strong market position, consistent value creation, and industry leading management. BMS Group as a whole is delighted to expand the range of services provided to Brotherhood, as we remain focused on offering holistic solutions for capital management and strategic development to our clients across reinsurance, legacy, rating advisory, and capital markets.”
John Butler, managing director at Cohen & Company, said: “We are delighted to be able deploy our deep insurance industry expertise to support Brotherhood Mutual with regulatory-qualifying capital as they continue to develop their very successful business. We look forward to a long and mutually beneficial relationship with their highly talented management team over the coming years.”
