Transatlantic Holdings Inc.'s $250 million catastrophe bond priced at the mid-point of initial guidance, Artemis reported.
The Bowline Re 2018-1, which offers a single tranche of class A notes, will pay investors a 4.5% coupon, the middle of its initial price guidance range of 4.25% to 4.75%.
The upsized cat bond, issued through a newly registered Bermuda special purpose insurer called Bowline Re Ltd., will provide collateralized reinsurance protection to Transatlantic Reinsurance Co. and named subsidiaries TransRe London Ltd., TransRe Zurich, Fair American Insurance & Reinsurance Co. and Fair American Select Insurance Co. for four years against losses from named storms, quakes and severe thunderstorms across the U.S., Puerto Rico, Canada, the U.S. Virgin Islands and District of Columbia. It will be provided on an annual aggregate and weighted industry loss basis.
The transaction will take effect in the week of May 14.