The price guidance for two tranches of notes of Tokio Millennium Re's Spectrum Capital series 2017-1 catastrophe bond has been narrowed, Artemis reported, with the pricing for one of the tranches dipping below its initial coupon range.
The $250 million Spectrum Capital series 2017-1, Tokio Millennium Re's first full cat bond issue, was initially launched in late-May. The series is split into two tranches of notes, with the Class A notes targeting $100 million of annual aggregate coverage. The range for the Class A notes, launched originally with a coupon range in between 6.0% and 6.75%, has been tightened to a level between 5.75% and 6%, Artemis reported. The series' Class B notes, which had an initial guidance of 3.25% to 4.0%, has also experienced a narrowing of their coupon range to 3.5% and 3.75%, according to Artemis.
The cat bond will provide Tokio Millennium Re with reinsurance protection against losses from U.S. storms, earthquakes, severe thunderstorms, wildfires, winter storms and Canadian earthquakes, according to Artemis. The series is expected to close in mid-June, Artemis reported.