View this article online: https://www.insurancejournal.com/news/international/2006/01/19/64336.htm
Strategy International Insurance Group, Inc., a provider of specialty lines of insurance, reinsurance and structured risk underwriting focusing on credit risk and credit enhancement, announced from Toronto that it has signed a binding letter of intent with Nexxus One Holding, Ltd. to provide $100 million in new capital for Strategy by January 31, 2006.
Strategy International is a publicly traded Texas corporation, which is a holding company for a group of financial service companies that are located throughout the world. It is in the process of concluding a merger with the Toronto-based RS Group of Companies (See IJ Website June 1, 2005, Jan.11, 2006).
The Bulletin said: “Under the terms of the letter, in exchange for 103,000,000 million of Strategy’s common stock, Nexxus One will increase the underwriting capacity of Strategy by delivering $100 million in the form of an investment grade NAIC equity admissible bond. The asset securing this offer is a five year 5.5 percent Global Note of a diversified portfolio of AA/AAA rated municipal bonds.
“Strategy and Nexxus agree to use their best efforts to complete the transaction in a timely manner. Brokering this transaction is RS Group of Companies, Inc. a provider of pass-through risk specialty insurance and reinsurance products, which has recently announced it would merge into Strategy.”
Strategy’s President and CEO Stephen Stonhill commented: “We are pleased to have been able to work with Nexxus to negotiate an infusion of new capital to Strategy. Today’s announcement will provide Strategy with additional underwriting capital necessary for the Company to pursue its business plan for 2006.”