HAMILTON, Bermuda, May 7 /PRNewswire-FirstCall/ -- Scottish Re Group
Limited (NYSE: SCT), a global life reinsurance specialist, today announced
the completion of the $600 million equity investment transaction announced
November 27, 2006 by MassMutual Capital Partners LLC, ("MassMutual
Capital"), a member of the MassMutual Financial Group, and affiliates of
Cerberus Capital Management, L.P. ("Cerberus"), a leading private
In accordance with the Securities Purchase Agreement, MassMutual
Capital and Cerberus each invested $300 million in Scottish Re in exchange
for 1,000,000 newly issued convertible preferred shares ("Convertible
Shares") of Scottish Re, which can be converted into 150,000,000 ordinary
shares ("Ordinary Shares") of the company at any time. MassMutual Capital
and Cerberus now hold a combined 68.7% of the voting power of Scottish Re
"We are pleased to announce the completion of the equity investment
transaction by MassMutual Capital and Cerberus and thank our clients,
employees and investors for their support as we have worked through this
process. The completion of this transaction provides Scottish Re the
capital and liquidity necessary to support our business on a go forward
basis," said Paul Goldean, Chief Executive Officer of Scottish Re Group
Limited. "With the transaction closed and the company returned to financial
stability, we are now able to concentrate our full attention on
re-establishing Scottish Re as one of the top global life reinsurance
companies. Working in close partnership with our new majority investors and
drawing upon their deep industry and operational knowledge, Scottish Re
will continue to improve its operational effectiveness and credit ratings
profile. All of us at Scottish Re look forward to working with MassMutual
Capital and Cerberus to deliver on our financial and business goals, and
return value to all our shareholders."
With the close of the transaction today, Scottish Re's current board of
directors has been expanded to eleven members. Paul Goldean and Jeffrey
Hughes, a designee of The Cypress Group, will retain their directorship
roles, and the following individuals have been appointed to the board
effective immediately to fill the remaining positions.
Jonathan Bloomer Partner, Cerberus European Capital Advisors Ltd.
Christopher Brody Managing Director, Cerberus Capital Management, L.P.
James Butler Retired Partner, KPMG LLP
James Chapman Vice Chairman, JetWorks Leasing, LLC
Thomas Finke Managing Director, Babson Capital LLC
Robert Joyal Director, Jefferies Group, Inc.
Larry Port President and Managing Director,
MassMutual Capital Partners, LLC
Michael Rollings Executive Vice President and Chief Financial Officer,
Massachusetts Mutual Life Insurance Company
Lenard Tessler Managing Director, Cerberus Capital Management, L.P.
"With the conclusion of this equity transaction, Scottish Re has
entered a new chapter in its business development," added Christopher Brody
and Larry Port, two of Scottish Re's new board members. "On behalf of the
board, we look forward to working closely with Paul Goldean and the rest of
the employees of Scottish Re to return the company to its position as a
leader within the reinsurance industry and to provide long-term value to
its shareholders. The financial stability provided to the company as a
result of this transaction, oversight of the new board, operational support
of the majority investors and finally, the talented people at Scottish Re
serve as a strong foundation on which to drive future growth and success."
Scottish Re will continue to operate its business under its current
structure and will remain traded on the New York Stock Exchange under the
Citigroup Corporate and Investment Banking and Morgan Stanley served as
financial advisors and Debevoise & Plimpton LLP, Schulte Roth & Zabel LLP
and Ropes & Gray LLP served as legal counsel to both MassMutual Capital and
Cerberus in the transaction. Goldman Sachs and Bear, Stearns & Co. served
as Scottish Re's financial advisors and LeBoeuf, Lamb, Greene & MacRae, LLP
together with Maples & Calder served as the Company's legal counsel.
About Scottish Re
Scottish Re Group Limited is a global life reinsurance specialist.
Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey,
Ireland, Singapore, the United Kingdom and the United States. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance Company
(Cayman) Ltd., Scottish Re (U.S.), Inc., and Scottish Re Limited.
Additional information about Scottish Re Group Limited can be obtained from
its Web site, www.scottishre.com.
About MassMutual Capital
MassMutual Financial Group is the fleet name for Massachusetts Mutual
Life Insurance Company (MassMutual) and its affiliates, with more than $450
billion in assets under management at year-end 2006. Assets under
management include assets and certain external investment funds managed by
Founded in 1851, MassMutual is a mutually owned financial protection,
accumulation and income management company headquartered in Springfield,
Mass. MassMutual's major affiliates include: OppenheimerFunds, Inc.; Babson
Capital Management LLC; Baring Asset Management Limited; Cornerstone Real
Estate Advisers LLC; MML Investors Services, Inc., member NASD and SiPC
(www.nasd.org and www.sipc.org); MassMutual International LLC and The
MassMutual Trust Company, FSB. MassMutual is on the Internet at
MassMutual Capital is a limited liability company created by
Massachusetts Mutual Life Insurance Company to focus on strategically
investing in business opportunities as a means of optimizing the value of
the enterprise on behalf of MassMutual and other investors.
About Cerberus Capital Management
Established in 1992, Cerberus Capital Management, L.P. is one of the
world's leading private investment firms with approximately $23.5 billion
under management in funds and accounts. Through its team of more than 275
investment and operations professionals, Cerberus specializes in providing
both financial resources and operational expertise to help transform
undervalued companies into industry leaders for long-term success and value
creation. Cerberus is headquartered in New York City, with affiliate and/or
advisory offices in Chicago, Los Angeles, Atlanta, London, Baarn,
Frankfurt, Tokyo, Osaka and Taipei. More information on Cerberus can be
found at www.cerberuscapital.com.
Certain statements included herein are "forward-looking statements"
within the meaning of the federal securities laws. The management of
Scottish Re Group Limited (the "Company") cautions that forward-looking
statements are not guarantees and actual results could differ materially
from those expressed or implied in the forward-looking statements.
Investors are also directed to consider the risks and uncertainties
discussed in documents filed by the Company with the Securities and
Scottish Re contacts
Sarah Lubman / Catherine Jones
MassMutual Capital contacts
SOURCE Scottish Re Group Limited