International law firm McDermott Will & Schulte represented Obra Capital (Obra), a specialized alternative asset management firm that provides investment products and solutions across insurance and credit verticals, as the equity sponsor for an innovative insurance solution. The product leverages structured finance and credit derivatives to enable letters of credit as collateral for operating companies' insurance deductibles.
Driven by companies' need to post collateral for deductibles under workers' compensation, auto, and general liability policies, this solution uses a unique financing and hedging structure to deliver a cost-efficient, off-balance-sheet method for funding such collateral.
The McDermott team was led by Jonathan Ching, Andrew Kummer, John Lutz, and Audrey Bischoff with key assistance from Adam deLisle, David Saunders, and Robert Unger.
McDermott advised Obra Capital in the financial backing of Arra Finance to acquire Crescent Auto Finance earlier this year.