- Florida's Citizens Property Insurance Board of Governors Approves Up to $1 Billion in Coastal Account Liquidity Financing
- April 17, 2015
- Law Firm: Colodny Fass P.A. - Fort Lauderdale Office
At its meeting this morning, April 7, 2015, Citizens Property Insurance Corporation's ("Citizen's") Board of Governors ("Board") approved the issuance of up to $1 billion of Coastal Account Senior Secured Bonds, Series 2015A ("Series 2015A") as part of its ongoing liquidity financing program in preparation for the 2015 hurricane season and beyond.
The external financing program is intended to supplement Citizens' internal resources by providing a cash "bridge" to certain claims-paying resources of Citizens, particularly potential reimbursements from the Florida Hurricane Catastrophe Fund.
The Board had approved the general parameters for the 2015 liquidity program at its meeting on December 10, 2014, at which point work began on the legal and financial steps necessary to provide further structure needed. The program is also intended to leverage the current low interest rate environment and streamline the overall Coastal Account financing process.
Series 2015A will be scheduled for issue in mid-May 2015 following approval from the Florida Office of Insurance Regulation and a regulatory appeal period. Pricing will be finalized based on bond market conditions at that time.