$1.25bn Kilimanjaro II Re cat bonds secure lowered pricing

by Artemis on April 7, 2017

Reinsurance company Everest Re’s latest catastrophe bond issuance is set to achieve an upsized $1.25 billion target at the reduced pricing levels reported earlier this week, making the transaction the best value in the reinsurers cat bond sponsorship history.

Everest Re’s twin series catastrophe bond issuance grew to $1.25 billion while being marketed, with the Kilimanjaro II Re Ltd. (Series 2017-1) more than doubling in size to $950 million, while its Kilimanjaro II Re Ltd. (Series 2017-2) twin remained at its launch target of $300 million.

The collateralized reinsurance protection being sought will provide the reinsurer with annual aggregate reinsurance cover against losses from named storms and earthquakes across the U.S. (including Puerto Rico) and Canada, on an industry loss basis and featuring a PCS index trigger.

The pricing has now been fixed, we understand, at the levels revealed earlier this week, with all tranches now priced towards or at the bottom end of the initial guidance ranges.

With pricing now finalised it seems Everest Re will be issuing both the Series 2017-1 four-year tranches and the Series 2017-2 five-year tranches of notes, which as a single issuance of cat bonds at $1.25 billion will be the second largest ever seen.

The Kilimanjaro II Re Ltd. (Series 2017-1) and Kilimanjaro II Re Ltd. (Series 2017-2) catastrophe bonds will complete and settle next week. You can read about every cat bond since the market’s inception in the Artemis Deal Directory.

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