Amtrak Transfers $275 Million Risk in First Cat Bond for Railway

  • Coverage protects against infrastructure damage in Northeast
  • GC Securities and Goldman Sachs are bookrunners on deal
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Amtrak obtained $275 million of natural-disaster protection from fixed-income investors in the first catastrophe bond for the U.S. long-distance passenger railway.

Marsh & McLennan Cos.’ GC Securities joined Goldman Sachs Group Inc. as bookrunners and initial purchasers of the debt, Amtrak said Wednesday in a statementBloomberg Terminal. The bonds will help protect Amtrak if a catastrophe damages infrastructure in the corridor from Boston to Washington.