(Bloomberg) -- 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 statement. The bonds will help protect Amtrak if a catastrophe damages infrastructure in the corridor from Boston to Washington.

Insurers and reinsurers typically sell catastrophe bonds to investors to help cover extreme hazards, and buyers of the securities get above-market interest rates for taking the risk that they could lose principal in the event of a qualifying disaster. Amtrak’s coverage would protect against storms similar to Sandy in 2012, when sea water flooded New York tunnels, causing more than $1 billion in damage, according to the statement.

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